Bell Potter initiates coverage for Southern Cross Electrical Engineering with 'buy' rating

Southern Cross Electrical Engineering

22/07/2024 04:26

** Bell Potter initiates coverage for Australia's Southern
Cross Electrical Engineering  SXE.AX  with a "Buy" rating at a
target price of A$2.10 per share
    ** "We expect SXE will deliver EPS growth of 41.3% in FY25,
with our FY25 EBITDA estimate of $53.8m consistent with the
companies >$53.0m guidance" - Bell Potter
    ** Brokerage says co's blue-chip clientele including
Woolworths Group  WOW.AX  , BHP Group  BHP.AX  and others, and
high proportion of recurring work (37% of FY23 Group revenue)
provides some stability to operations and financials and reduced
counterparty risk
    ** However, shares of co fall as much as 2.4% to A$1.66,
their lowest level since June 27
    ** Stock has more than doubled this year as of last close


($1 = 1.4990 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))