Monadelphous shares dip after Macquarie downgrade
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More news: Engineering group Monadelphous was the worst performing ASX 200 company after morning trade, as a downgrade by Macquarie weighed on the stock.
Monadelphous shares were down 1.1% to $14.28 by 12:15pm AEDT as the ASX 200 index advanced 1.4%.
Macquarie downgrades Monadelphous after recent rally
The news: Macquarie has downgraded its rating on engineering group Monadelphous to 'neutral' having seen its share price rise nearly 20% since November.
The numbers: Macquarie downgraded Monadelphous from 'outperform' to 'neutral' but raised its target price from $14.44 to $14.80. It also lifted its earnings per share by 0.7% in FY25 and 0.6% in FY26.
Monadelphous last closed at $14.44.
The context: Macquarie analysts noted the stock has rebounded after challenging trading for much of the 2024 calendar year, closing the valuation gap between its share price and earnings per share.
The market has recognised Monadelphous' resilience and its diverse business model, the analysts said, with a breadth of opportunities in the pipeline and a strong balance sheet.
Macquarie forecasts "low double-digit" earnings growth for Monadelphous over the next three years.
The source: Macquarie research
