Perenti's 'stale' FY25 targets to see revision at strategy meet, says Citi

Perenti

05/06/2023 04:49

** Citi says Australian mining services provider Perenti
Ltd's  PRN.AX  FY25 targets are "stale" after it hiked its FY23
outlook thrice so far this fiscal year 
    ** Brokerage expects Perenti to revise its current FY25
revenue target of A$2.5 bln ($1.65 bln) at its strategy meeting
on June 6
    ** PRN has already hiked its FY23 revenue outlook to between
A$2.8 bln and A$2.9 bln, with EBIT now expected between A$250
mln and A$265 mln
    ** Citi expects FY25 revenue of A$2.78 bln, with EBITA
margin seen at 10.2% vs PRN target of 10%
    ** Adds PRN stock is not without risks, with skilled labour
shortage, delay in dividend reinstatement, among others, posing
significant risks
    ** PRN trading 1.5% higher, as at 0304 GMT. Stock down 12.6%
so far this year, as of last close, vs a 1.5% increase in the
ASX All Ordinaries index  .AORD 
    ** All six analysts that cover the stock rate it "buy" or
higher; their median PT is A$1.44 – Refinitiv data

     ($1 = 1.5142 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))