2114 GMT - Monadelphous's valuation is at an 80% premium to global engineering contractors. Jefferies finds that hard to justify, despite its largely unblemished history of delivering on contracts. Analyst John Campbell notes Monadelphous has changed its business mix over the past decade. Maintenance work now accounts for a majority of revenue. "While it's more future-proof, it's not immune to weaker capex," Jefferies says. Prices of some commodities, notably copper and gold, are positive for mine developments. But others, such as nickel and zinc, are not. Minerals processing is also having a hard time. "Most existing Australian smelters now require government subsidies to remain viable," says Jefferies. "This is not conducive to future investment." It retains an underperform call, but raises its price target by 17% to A$21.00/share. Monadelphous ended Tuesday at A$31.07. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 27, 2026 16:14 ET (21:14 GMT)

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