IMDEX shares slide as analysts remain neutral following strong fourth quarter
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The news: Shares in IMDEX were leading losses on the ASX 200 in afternoon trade as analysts reiterated their neutral position on the stock after the mining services company posted a FY25 result in line with market expectations.
The numbers: IMDEX shares slipped 12% to $3.02 at 2:23pm AEST, but were still up 27.9% in the year to date. The stock had closed 3.9% higher in the previous session.
The context: Macquarie analysts flagged that the FY25 result, reported on Monday, was broadly in line but was lower quality owing to reorganisation adjustments and higher capital spend. However, they noted that “valuation appears full at [about] 13x EBITDA, hence we retain neutral”.
The analysts also flagged that while no FY26 guidance was provided, market sentiment appeared positive and the fourth quarter result was strong. Macquarie lifted its 12-month price target from $2.80 to $3.50.
Citi analysts noted that the fourth quarter revenue result beat analyst estimates and “could be a sign of things to come but IMDEX notes that its traffic light signal remains ‘amber’”. The analysts also noted that the “timing of meaningful rebound in exploration continues to remain opaque”.
Citi similarly lifted its target price, from $3.15 to $3.55, and retained a ‘neutral’ rating on the stock.
Meanwhile, Bell Potter analysts said the “robust” fourth quarter results “was the key takeaway” and flagged it is the “strongest 4Q performance on record”. They raised their 12-month target price from $3.05 to $3.90 and reiterated their ‘buy’ rating.
The sources: Macquarie research, Citi research, Bell Potter research
