Jefferies downgrades Australia's Imdex on weak sector-wide drilling activity

Imdex

03/05/2024 24:54

** Jefferies cuts price target on drilling services provider
Imdex Ltd  IMD.AX  to A$2.20 from A$2.25, downgrades rating to
"neutral" from "buy"
    ** Says IMD shares are up ~30% since interim results in
mid-Feb due to gold and copper prices
    ** However, exploration activity remains weak and junior
miners are on the sidelines despite higher prices, says
Jefferies
    ** Cycle is still poised to turn, but continued uncertainty
and volatility cloud any prospect of meaningful recovery in near
term - Jefferies
    ** Brokerage cuts FY24 core net profit forecast by 3.5% to
A$55.1 mln ($36.20 mln)
    ** Six of nine analysts rate the stock "buy" or higher, and
three "hold"; their median PT is A$2.25 – LSEG data
    ** IMD up ~11% YTD, as of last close


($1 = 1.5223 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))