Citi hikes PT, earnings view on Australia's Imdex on Devico buy

Imdex

20/01/2023 02:54

** Citi hikes price target on mining technology services
provider Imdex Ltd  IMD.AX  to A$2.92 from A$2.70 and maintains
"buy" rating
    ** PT hike after IMD announces acquisition of Norwegian core
drilling solutions supplier Devico AS for enterprise value of
A$334 mln ($231.53 mln) 
    ** Brokerage says believes Devico offers "higher-quality
earnings base, expansion of geographical footprint particularly
in Europe, and a complementary product base"
    ** Says positive trading update with continuing tailwinds
implying a strong 1H23 and encouraging signs around organic
growth potential in 2H 
    ** Brokerage raises FY23 and FY24 EBITDA view by 9% and 30%,
respectively, on contributions from Devico
    ** Seven of nine analysts rate the stock "buy" or higher,
one "hold," and one "sell;" their median PT is A$2.70 –
Refinitiv data
    ** IMD up 13.6% so far this year, as of last close, compared
with a 25.1% slump in 2022
    ($1 = 1.4426 Australian dollars)
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))