Citi cuts PT after Australia's Imdex posts drop in annual profit

Imdex

28/08/2023 22:31

** Citi downgrades price target on Imdex Ltd  IMD.AX  to
A$1.60 from A$2.00 after the company annual profit slumps  
    ** Mining technology firm posted FY net profit after tax of
A$35 million ($22.50 million), lower than A$44.7 million a yr
ago
    ** FY normalised EBITA margin was at 29.8% vs 30.7%, with
Citi noting that margins in 2H have likely bottomed out
    ** We think FY24 is likely to be a tale of two halves with
operating environment remaining challenged in 1H before
improving in 2H subject to meaningful deployment of capital to
exploration - brokerage 
    ** Raises FY24 revenue by 7% to A$453 mln, while trims FY24
EBITDA forecast by 6% to A$135 mln
    ** Out of 9 analysts, 5 rate the stock "buy" or higher and 4
 "hold"; their median PT is A$2.10 – Refinitiv data
    ** Stock down 30.4% this year, as of last close

($1 = 1.5557 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))