BUZZ-Bell Potter initiates coverage for Southern Cross Electrical Engineering with 'buy' rating

Reuters07-22

** Bell Potter initiates coverage for Australia's Southern Cross Electrical Engineering with a "Buy" rating at a target price of A$2.10 per share

** "We expect SXE will deliver EPS growth of 41.3% in FY25, with our FY25 EBITDA estimate of $53.8m consistent with the companies >$53.0m guidance" - Bell Potter

** Brokerage says co's blue-chip clientele including Woolworths Group , BHP Group and others, and high proportion of recurring work (37% of FY23 Group revenue) provides some stability to operations and financials and reduced counterparty risk

** However, shares of co fall as much as 2.4% to A$1.66, their lowest level since June 27

** Stock has more than doubled this year as of last close

($1 = 1.4990 Australian dollars)

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))

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