Citi sees 'abundance of tailwinds' for Aussie engineering firm Monadelphous

Monadelphous

02/02/2025 22:25

** Citi says Australian engineering firm Monadelphous Group
 MND.AX  is experiencing an "abundance of tailwinds" although
extent of potential for upside is "adequately captured" for now
    ** Brokerage downgrades rating to "neutral" from "buy",
raises PT to A$16.30 from A$16.20; MND last traded at A$15.81
apiece
    ** Says MND's 1H25 will likely demonstrate continuation of a
"favourable backdrop" for contractors
    ** Citi predicts FY25 to-date secured work balance of ~A$1.7
bln ($1.05 bln), around ~91% of work awarded to MND in FY24
    ** 1H result is likely to set the tone for remainder of year
with "high single-digit" topline growth - Citi
    ** Four of 12 analysts rate MND "buy" or higher, seven
"hold" and one "sell"; their median PT is A$14.00 – LSEG data
    ** MND up ~13% this year, as of last close


($1 = 1.6247 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; editing by Diane
Craft)
 ((Sameer.Manekar@thomsonreuters.com;))