Outlook for Australian contractors feels relatively favourable - Jefferies

Perenti

09/02/2023 20:05

** Jefferies says performance of shares of Australian contractors over the
last 6-mths has been strong despite inflation and labour productivity issues    
    ** Brokerage prefers NRW Holdings Limited  NWH.AX , IMDEX Limited  IMD.AX 
and Perenti LTD  PRN.AX  for this reporting season, says outlook for the whole
sector feels relatively favourable
    ** Brokerage says exploration-exposed companies have outperformed in the
last 3-mths, mainly driven by strong metals prices and resurgence in junior 
raising
    ** NWH (PT A$3.00, Buy): Jefferies forecasts 1H23 EBITA of A$82 mln($56.90
mln) and FY23 EBITA of A$174m 
    ** PRN (PT A$1.35, Hold): Brokerage forecasts 1H23 EBITA of A$114 mln and
FY23 EBITA of A$240 mln
    ** IMD (PT A$2.80, Buy): Jefferies says key market indicators suggest
earnings should be positive 
    ** All the eight analysts covering the NWH stock rate it at "buy" or higher;
their median PT is A$2.85 – Refinitiv data 
    ** Five of six analysts rate PRN "buy" or higher, one at "hold"; their
median PT is A$1.37 
    ** Seven of nine analysts rate IMD "buy" or higher, one "hold" and one
"sell; their median PT is A$2.76
    ** NWH and IMD are up 2.5% and 15.4%, respectively, while PRN has fallen
9.9% this year, as of last close  
($1 = 1.4411 Australian dollars)
 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))