Citi sees Australia's Perenti raising guidance, backs 'buy' rating

Perenti

06/01/2025 21:36

** Citi says mining services provider Perenti  PRN.AX  is
showing strong signs of sustainable cash generation and balance
sheet improvement
    ** Brokerage maintains "buy" rating with a target price of
A$1.60/share, up from A$1.15/share
    ** Expects co to generate A$160 mln ($99.84 mln) of free
cash in FY25, with 26% expected in 1H, while maintaining a
conservative free cash guidance of over A$150 mln ($93.60 mln)
    ** Says PRN is on track to meet, if not exceed, initial
guidance, with potential for FY25 guidance upgrade driven by
improved drill rig utilization and prospective rate adjustments
in contract mining
    ** Notes surge in co's shares, up over 40% post-FY24
results, fuelled by anticipated sustained strong free cash
generation
    ** 6 of 7 analysts rate the stock "buy" or higher with 1 as
"hold"; their median PT is A$1.39 – LSEG data
    ** Shares of co last year gained 34%

($1 = 1.6026 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com;))