Australia's SGH gains as Morningstar hikes fair value estimate

SGH

19/09/2025 02:01

Updates

** Shares of SGH Ltd SGH.AX rise as much as 3.8% to A$51.11, their highest level since August 11

** Stock logs largest intraday pct gain since mid July

** Morningstar raises its fair value estimate for the diversified conglomerate by 32% to A$50 on lowered cost of capital and reassessment of co's surplus land and gas project

 ** Investment research firm sees a favorable outlook for SGH's unit WesTrac, supported by healthy expected production of bulk commodities

** Morningstar sees five-year EBITDA compound annual growth rate of 6.6% to A$2.7 billion ($1.78 billion), factoring in the earnings from Crux gas field

** Expects margins to improve to 19.8% by fiscal 2030 from 18.0% in fiscal 2025

** Stock up 10.5% YTD, including the day's moves

($1 = 1.5129 Australian dollars)

(Reporting by Anjali Singh and Nikita Maria Jino in Bengaluru)

((anjali.singh2@thomsonreuters.com))