Nick Maxwell, an analyst from PAC Partners, reiterated the Buy rating on Southern Cross Electrical Engineering Limited. The associated price target is A$2.53.
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Nick Maxwell’s rating is based on several strategic developments and financial metrics that favor Southern Cross Electrical Engineering Limited. The company has recently secured over $110 million in multi-year services and manufacturing awards, which not only strengthens its client relationships but also enhances its recurring revenue stream. This recurring revenue accounted for more than 33% of the total annual revenue in FY24, indicating a stable income base.
Additionally, Maxwell highlights the continuation of long-term agreements, such as the extended services agreement with Energy Queensland Limited and a new Master Services Agreement with Newmont Mining. These agreements underscore the company’s ability to maintain and expand its partnerships. Furthermore, Southern Cross Electrical Engineering is trading at attractive valuation multiples, with an FY26 EV/EBITDA multiple of 6x and a price-to-earnings multiple of 11.5x, supporting the Buy recommendation with a price target of $2.53.
According to TipRanks, Maxwell is a 3-star analyst with an average return of 18.8% and a 77.78% success rate. Maxwell covers the Industrials sector, focusing on stocks such as Southern Cross Electrical Engineering Limited, IPD Group Ltd, and SKS Technologies Group Limited.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a A$2.00 price target.