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Highlights

  • Perenti receives a BUY rating with a target price of AUD 1.80, reflecting an 11.8% upside from current levels.

  • FY25 revenue guidance reaffirmed between AUD 3.4 billion and AUD 3.6 billion, with free cash flow expected to exceed AUD 150 million.

  • Barminco awarded a new AUD 200 million contract at Westgold’s Great Fingall project, strengthening future earnings outlook.

Perenti Limited (ASX:PRN), a leading mining services company, has received a BUY recommendation from Bell Potter Securities, with a revised 12-month target price of AUD 1.80. This represents a potential upside of 11.8% over its current market price of AUD 1.61.

The positive rating might comes as Perenti announced consistent contract wins and reaffirmed financial guidance. 

FY25 Guidance Reaffirmed Across Key Metrics

Perenti has reaffirmed its FY25 guidance, projecting revenue between AUD 3.4 billion and AUD 3.6 billion and EBIT(A) between AUD 325 million and AUD 345 million. The company also expects to generate free cash flow exceeding AUD 150 million for the year.

Capital expenditure is projected at approximately AUD 330 million, while leverage remains within the healthy range of 0.6x to 0.7x. The second half of FY25 has so far met expectations across the group, with notable improvement in utilisation, particularly in the Drilling Services division.

Additionally, contract extensions at Agnew, Obuasi, and Mana sites are supporting current year performance and laying the foundation for FY26 and beyond.

AUD 200 Million Barminco Contract Boosts FY26 Outlook

Further enhancing its forward earnings visibility, Perenti’s underground mining division, Barminco, has secured a significant new contract with Westgold Resources Limited for underground mining services at the Great Fingall project in Western Australia. Valued at approximately AUD 200 million, the contract spans three years with an optional one-year extension.

The project scope includes mine development, production, and associated underground mining services. Mobilisation is scheduled to begin in July 2025, with capital requirements of around AUD 16 million anticipated in FY26.

Commenting on the development, Perenti Managing Director and CEO Mark Norwell stated, “We are excited to be partnering with Westgold on the Great Fingall project. This award highlights Barminco’s technical strength and expands our Australian underground portfolio. It supports our focus on sustainable cash generation and increased domestic earnings.”

Positive Outlook as Strategic Focus Delivers Results

The combination of reaffirmed guidance, ongoing contract wins, and a healthy pipeline of secured work underpins the strong BUY recommendation.