BUZZ-Bell Potter expects Australia's SGH to report moderating EBIT growth in FY26

Reuters
Aug 07
BUZZ-Bell Potter expects Australia's SGH to report moderating EBIT growth in FY26

** Shares of Australia's SGH SGH.AX fall as much as 1.28% to A$50.18

** Analysts at Bell Potter see the diversified conglomerate's EBIT growth moderating in FY26, and lowers revenue expectations over FY25-27 across co's industrial services units - WesTrac, Boral and Coates

** View informed by continued price pressure faced by co's equipment management solutions unit Westrac in H1 FY26, moderating construction activity and material price growth

** Bell Potter lowers EPS forecast for FY25, FY 26, FY27 by 2%, 2% and 1%, respectively

** Analysts maintain "hold" rating on the stock, keeping price target unchanged at A$54/shr

** Stock currently down 0.4%, bringing YTD gains to 10.2%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))

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