Emeco Holdings' (ASX:EHL) strong balance sheet and its free cash generation outlook could result in greater certainty for the company's fiscal 2025 earnings outlook, Jarden Research said in a Nov. 20 note.
The mining equipment rental company said it expects operating earnings before interest, tax, depreciation, and amortization (EBITDA) of at least AU$300 million in the fiscal year ending June 30, 2025.
The investment firm believes that the company's less than 1x net debt-to-EBITDA ratio and free cash flow generation could improve over fiscal 2025 to fiscal 2026.
"All else remaining equal, we see greater certainty for the earnings outlook now for FY25E, alongside a strong investment case driven by fundamental value," the investment firm said.
Jarden Research upgraded the company to overweight from neutral and raised its target price to AU$1 from AU$0.85.
Emeco Holdings' shares were up almost 1% in recent Monday trade.
Price (AUD): $0.82, Change: $+0.01, Percent Change: +0.62%
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。