Deutsche Bank's take on EHL:
Earnings under pressure but value
emerging: Upgrade to Buy
Upgrade to Buy: PT reduced to $0.76
The sudden deterioration in EHL's earnings reflects its role as a marginal supplier of equipment to the mining industry and production cuts by clients.Earnings fluctuations are an inherent part of EHL's business model, and while this pullback is severe, an improvement in conditions will see demand for gear recover quickly. We believe EHL is much better placed to deal with these
conditions now, with its fleet configuration, geographic diversification and strong FCF generation providing flexibility in managing utilisation troughs.
Given EHL's 33% discount to NTA we upgrade to Buy.
Ann: Operating update and outlook , page-6
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Last
77.0¢ |
Change
-0.010(1.28%) |
Mkt cap ! $399.1M | |||
| Open | High | Low | Value | Volume |
| 78.5¢ | 78.5¢ | 76.5¢ | $144.1K | 187.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 22284 | 77.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 79.0¢ | 102995 | 2 |
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| Last trade - 16.10pm 03/10/2024 (20 minute delay) ? |
| EHL (ASX) Chart |