IMDEX shares rise as Citi sees improved mining activity
Make us a preferred source
Make us a preferred source on Google
The news: Shares in mining technology group IMDEX climbed after Citi said it is "incrementally more positive" on the company and hiked its target price by 12.5%.
The numbers: IMDEX shares were up 2% to $3.26 at 2:50pm AEST, having generated a 50% return over the last 12 months.
Citi retained its 'neutral' rating on the stock but increased its target price from $2.80 to $3.15.
The context: Citi analysts said that IMDEX — which provides technology solutions for drilling contractors and resource companies — may benefit from progressively increasing activity levels, fuelled by major and intermediate miners sustaining and expanding their programs.
However, they flagged that junior miners remain in "hibernation", dragging down overall activity levels.
What they said: "While industry feedback continues to point to potential perseverance of juniors in hibernation, we are encouraged by overall activity levels progressively lifting with majors and intermediate miners in the driving seat," the analysts said.
"The key question is what the earnings floor is in FY26 if juniors continue to remain on the sidelines. While we acknowledge the industry is not out of the woods yet, there are regions that are fueling growing optimism."
The source: Citi research
