Australia's Perenti gains as Citi notes improved drilling momentum

Perenti

27/01/2026 03:25

** Shares of Australia's Perenti PRN.AX rise 3.1% to A$2.98, their highest since January 20

** Citi expects a "solid" first-half result from diversified mining services co, citing better exploration outcomes, discipline on return hurdles and on capital allocation

** However, Citi expects co to reiterate FY26 guidance, with scope for progressive upgrades throughout the second half of the year, anticipating more capital discipline

** Sees ample tailwinds, including more opportunities for contract mining worldwide and an uptick in drilling services stemming from the exploration upcycle

** While drilling services are typically 1H skewed, FY26 could see 2H skew with progressively improving momentum -- Citi

** Says remains upbeat on co, reiterates "buy" rating

** Stock up 6.6% YTD, after doubling in 2025

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))