Mercury NZ Nears Threshold for Earnings Guidance Upgrade

Dow Jones10-20

2234 GMT - Macquarie reckons New Zealand-based renewable power generator Mercury NZ is closing in on the threshold where it would consider upgrading its annual earnings guidance. It posits that view after Mercury NZ disclosed its 1Q performance, which implied quarterly Ebitdaf of NZ$357 million, up 17% on year. Mercury NZ currently expects annual Ebitdaf of NZ$1.075 billion because of new power generation, tight cost control and 4.1 terawatt hours of hydro output. Macquarie says its forecasts point to a 3% beat. "We see overall upside to FY27 Ebitdaf guidance mainly in mass market and telco contributions," Macquarie says. It has a "neutral" call on Mercury NZ and raises its price target by 2%, to NZ$7.12/share. Mercury NZ is down 0.8%, to NZ$6.65 today.

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