Morningstar raises fair value estimate for Australia's SGH on low capital cost, others

SGH

18/09/2025 22:54

** Morningstar raises its fair value estimate for SGH Ltd SGH.AX by 32% to A$50.00 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

** Six of 9 analysts rate the stock "buy" or higher, and three rate it "hold"; their median PT is A$52.60, as per data compiled by LSEG

** Stock is up 6.7% YTD, as of last close

($1 = 1.5129 Australian dollars)

 (Reporting by Anjali Singh in Bengaluru)

 ((anjali.singh2@thomsonreuters.com))