Australia's SGH drops to 1-1/2-week low; UBS hikes PT on strong outlook

SGH

03/02/2025 02:38

** Shares of SGH Ltd  SGH.AX  fall 0.8% to A$47.67, their
lowest levels since Jan 23 
    ** Stock tracks an overall subdued sentiment seen in
Australian markets, with broader ASX 200 benchmark index  .AXJO 
down 1.7%  .AX 
    ** UBS hikes price target for shares of diversified
operations firm SGH Ltd to A$56 from A$45
    ** Brokerage stresses co's strong operating cash flows,
their forecast of earnings before interest and tax (EBIT) growth
of 10% for FY25
    ** Sees earnings to be supported by strong demand for
services, and robust Australian infrastructure and construction
pipeline
    ** Six of 9 analysts rate the stock "buy" or higher, three
"hold"; their median PT is A$45.9 – LSEG data
    ** Stock has risen 25% in 2024

    

 (Reporting by Nichiket Sunil in Bengaluru)
 ((Nichiket.Sunil@thomsonreuters.com;))