** Jefferies upgrades FY27-28 EPSA for Australia's NRW Holdings NWH.AX by around 3%, and raises PT slightly to A$5.60 from A$5.25 after co signed an A$750 million ($503.48 million) mining services contract

** Co, which offers diversified contract services to the resources and infrastructure sectors, said on Monday its unit has signed a deal with TEC Coal Pty for works at the Stanwell Meandu Mine in Southern Queensland

** Jefferies says EBITDA margins for contract works will be well below co's current book average due to minimal capital commitment

** However, brokerage adds that given minimal D&A and capex, it expects return on capital employed over the term of the contract to be very good

** Jefferies recently downgraded co to 'Hold' due to its strong outperformance, adding NWH is trading at a decent premium to its historic PE valuation metrics

** NHW up 6.2% YTD

($1 = 1.4896 Australian dollars)

(Reporting by Shruti Agarwal in Bengaluru; Editing by Nia Williams)

((Shruti.Agarwal@thomsonreuters.com))