Jefferies raises PT on Australia's Perenti after co raises guidance

Perenti

06/06/2023 21:55

** Jefferies sees Australia's Perenti Limited  PRN.AX 
achieving organic growth in FY24 and FY25, increases forecast
for FY23-24 EBITA by 2-3% 
    ** Co on Tuesday raised its FY23 EBIT(A) forecast to A$250
mln-A$265 mln ($166.80 mln-$176.81 mln) from A$230 mln-A$250 mln
and FY25 revenue target to A$3.0 bln, up from A$2.5 bln expected
earlier              
    ** Brokerage sees A$30 million organic growth in FY24 & FY25
helping co reach its FY25 EBITA target 
    ** Jefferies also increase FY25 EBITA forecast by 11% to
align with the FY25 target for PRN 
    ** Brokerage increases PT for co to A$1.50 from A$1.40 while
maintaining rating at "buy"
    **  Brokerage, however remains cautious around PRN's
ambition to grow its mining services division inorganically as
well as the inclusion of future focused investment in the
capital management framework 
    ** Six of six analysts rate the stock "buy" or higher; their
median PT is A$1.47 – Refinitiv data
    ** Stock has fallen 7.2% this year, as of last close


($1 = 1.4988 Australian dollars)

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))