Perenti (ASX:PRN) is expected to face a modest earnings "air pocket" in fiscal year 2027 before growth resumes, driven by stronger US expansion and improving utilization trends, Jefferies said in a note on Wednesday.

Jefferies said that, despite a strong underlying pipeline, activity in Barminco and African Underground Mining Services is now expected to start contributing in late fiscal year 2027 or early fiscal year 2028 instead of earlier, due to delays in contract conversion rather than any weakening in long-term demand.

The firm expects a modest impact in the first half of 2027 from softer exploration activity, driven by higher diesel costs and budget pressures on junior and mid-tier miners, but reiterated that the company's greater exposure to production drilling should help offset broader sector volatility.

The firm remains constructive on the company's strategy under Chief Executive Vanessa Torres, citing Barminco's expansion into the US, reduced exposure to West Africa, growth in artificial intelligence and logistics, and ongoing portfolio reshaping through divestments, mergers, and acquisitions.

Jefferies maintained a hold rating on Perenti and decreased the price target to AU$2.35 from AU$2.50.

The company's shares fell 6% in recent Thursday trade.