Jefferies initiates coverage on Australia's Macmahon at 'hold', shares fall

Macmahon Holdings

02/10/2026 02:10

Updates
** Jefferies initiates Australia's Macmahon MAH.AX with a "hold" rating, saying mining contractor's turnaround appears largely complete, with FY26 EBITA margins, safety metrics and order book at 20-year highs
** MAH shares fall as much as 8.1% to A$1.02, hitting their lowest level since September 18

        ** Brokerage says Macmahon established itself as tier-one contractor, supported by recent contract wins and long-term customer retention
** Jefferies expects favourable outlook for mining & civil construction activity in Australia and Indonesia
** Views acquisition of Aspect Engineering as positive move up resources value chain, estimating it to be about 7% EPS accretive    
** One of three analysts rate the stock "buy" or higher, two "hold"; their median PT is A$1, according to data compiled by LSEG
** Stock up 53.4% YTD, including moves in current session

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com))