Emeco Holdings has offered first half guidance slightly below Macquarie, noting headwinds from WA labour shortages and caution among east coast coal miners. Management expects a better second half.
The broker agrees and highlights a strong balance offering capital management potential.
Outperform retained, target falls to $1.27 from $1.35.
Sector: Capital Goods.
Target price is $1.27.Current Price is $1.06. Difference: $0.21 – (brackets indicate current price is over target). If EHL meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
