Citi raises PT for Australia's Perenti; optimistic on contract renewals

Perenti

02/06/2025 20:11

** Citi raises PT for Australia's Perenti PRN.AX to A$1.9 on valuation roll forward and higher multiple to reflect improved confidence in free cash generation, others

** The service miner secures A$1.1 bln ($714.01 mln) contract to provide underground mining services at London-listed Endeavour Mining's EDV.L Mana complex in Burkina Faso

** Brokerage says new contract awards unlikely to fully offset void from Zone 5 contract loss in FY26, but PRN appears well-placed in near term with robust pipeline of opportunities

** Citi says Cowal, Dalgaranga, Ernest Henry and Geita ops set for renewal in new term as well

** Average rating of seven analysts for PRN is "buy"; their median PT is A$1.52, according to data compiled by LSEG

** PRN up 16.9% YTD

($1 = 1.5406 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru)

((Sneha.kumar@thomsonreuters.com))