SGH's (ASX:SGH) estimated earnings before interest and taxes (EBIT) for the second half of fiscal 2026 was downgraded by 2%, and the firm is forecast to achieve 2.3% EBIT growth year-over-year in the fiscal year, Jefferies said in a Thursday note.

EBIT growth for SGH continues to moderate in the absence of mergers and acquisitions, which is the key catalyst to drive an acceleration in earnings growth.

Jefferies downgraded its fiscal year 2027 EBIT estimate by 4% and its fiscal 2028 EBIT estimate by 5%, reflecting Boral diesel headwinds, weaker macroeconomic assumptions for Boral and Coates, and Westrac pricing headwinds.

The investment firm maintained its hold recommendation on SGH and reduced the price target to AU$46 per share from AU$51.90 per share.