Macquarie says Emeco exiting underground contracting to have good strategic outcome

Macmahon Holdings

22/12/2023 03:14

** Shares of Emeco Holdings  EHL.AX  rise as much as 2.3% to
A$0.665
    ** Analysts at Macquarie say mining services provider
exiting its underground contracting activities to have good
strategic outcome as it resets and simplifies co's business 
    ** EHL to exit underground contracting through transfer of
certain Pit N Portal (PNP) customer contracts, among others, to
Macmahon Holdings  MAH.AX   
    ** Shares of Macmahon fall as much as 2.7% to A$0.180   
    ** Brokerage says exiting could also open up a broader range
of rental opportunities in mining for EHL
    ** Macquarie cuts Emeco's earnings per share estimates by
3.1% for FY24 due to PNP exit 
    ** Brokerage cuts target price by 4.7% to A$1.03/shr,
reiterates "outperform" rating 
    ** Three of four analysts rate stock "buy" or higher, and
one "hold"; their median PT is A$1.0 - LSEG data
    ** EHL down 15.6% YTD, as of last close 
   

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))