Monadelphous has guided to sales being up around 10% in the first half versus the prior half, better than UBS anticipated. The stronger resumption in activity is reflected in improved staffing levels which have increased by around 20% since June.
UBS assumes a gradual recovery in maintenance revenue in FY21 while pressure on the oil & gas sector is likely to continue.
The AGM provided no further details on the dispute with Rio Tinto ((RIO)). UBS retains a Neutral rating and raises the target to $12.10 from $10.00.
Sector: Capital Goods.
Target price is $12.10.Current Price is $12.28. Difference: ($0.18) – (brackets indicate current price is over target). If MND meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).