Jefferies upgrades Maas Group, sees East Coast renewables as key driver

Investing.com -- Jefferies upgraded MAAS Group Holdings Ltd (ASX: MGH) to "Buy" from "Hold" and adjusted its price target to A$4.75 from A$5.30, amid improving prospects in Australia's East Coast renewables rollout despite ongoing project delay risks.

The firm noted that while project delays led to a 20% net profit miss in the first half of fiscal 2025, key construction projects have now commenced, suggesting demand could ramp up.

“We see demand ramp-up as relatively likely from here, with two key CW projects have now started, but expectations could still be hit by further delays,” analyst at Jefferies said.

But Jefferies cut its FY25-27 EPS forecasts by 32%, 12%, and 6%, respectively, due to continued risks.

Jefferies highlighted that construction materials are expected to contribute over 50% of group EBIT in FY26, up from 30% in FY23, marking an improvement in the business mix.

The firm noted ongoing risks related to renewables, particularly potential policy shifts following Australia's upcoming federal election, but said it believes near-term demand for wind energy projects is likely to remain intact.

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