Citi sees sequential improvement in volumes, retains 'buy' call on Australia's Imdex

Imdex

20/06/2023 23:19

** Citi sees sequential improvement in volumes as well as
acceleration in ARPU growth for Australia-based mining services
provider Imdex Ltd  IMD.AX ; retains 'buy' rating   
    ** Brokerage also sees recent signs of near-term ramp up
with drillers pointing to increasing fleet and elevated
end-customer demand
    ** Adds that pace of ramp up in exploration in 1Q is likely
to shape the remainder of FY24
    ** However, brokerage says co's second-half has been marred
by soft volume with moderate growth at the back end of May
    ** Citi also sees headwinds to volume growth persisting on
account of wildfires in Canada
    ** We cut our EBITDA estimates by 1-3% across the 3-year
forecast period as we factor in more moderate volume improvement
across Americas and APAC - Citi
    ** Seven of nine analysts rate the stock "buy" or higher,
two "hold"; their median PT is A$2.67 – Refinitiv data
    ** Stock has fallen 17.3% this year

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))