Intel stock spikes after report of possible US government stake
Investing.com - Jefferies has reduced its price target on SGH Ltd (ASX:SGH) to AUD51.20 from AUD56.70 while maintaining a Hold rating on the stock.
The downward revision follows SGH’s fiscal year 2026 guidance, which projects low-single-digit to mid-single-digit percentage EBIT growth, falling short of consensus expectations for high-single-digit percentage growth.
Jefferies notes that SGH’s growth is expected to be weighted toward the second half of fiscal 2026, with construction activity not anticipated to experience meaningful improvement until calendar year 2026.
The firm also points out that WesTrac growth is likely to moderate compared to recent periods as elevated Capital sales begin to normalize from high levels.
Jefferies considers the stock’s recent price decline warranted given high-single-digit percentage EPS cuts, and identifies mergers and acquisitions as "the only obvious near-term catalyst" for the company.
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