Turnaround momentum continued for MLG Oz in the 1H, according to Morgans, with results beating expectations. The highlight  was rebounding margins, according to the broker.

Compared to the previous corresponding period, revenue and earnings (EBITDA) rose by 29% and 72%, respectively. The earnings margin jumped to 12.8% from 9.7% on optimisation of existing contracsts and rates renewed at higher levels.

The broker upgrades FY24-26 EPS forecasts by 15-30% and highlights the company has grown revenue run-rates by 75% (in the less than three years since IPO) amid tough markets.

The target rises to $1.05 from 98c, and the analyst changes the rating for MLG OZ to Speculative Buy from Add, without further explanation.

Sector: Materials.

Target price is $1.05.Current Price is $0.65. Difference: $0.40 - (brackets indicate current price is over target). If MLG meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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