TRAJAN GROUP HOLDINGS LIMITED (TRJ)
Share Price Analysis and Chart

30/08/2024

1

Buy

$1.40

41.41%

Ord Minnett raises its target for Trajan Group to $1.40 from $1.10 after a much improved 2H performance resulted in a beat for FY24. Underlying group EBITDA of $12.3m was a 6% beat against the broker's estimate and above recent guidance.

Thanks largely to rebounding sales in the Consumables segment, explains the analyst, the overall 2H gross profit margin hit 42.5%, up from 39.7% in H1.

The broker suggests the FY25 outlook is positive given the improving gross profit margin and an improved financial performance from the Disruptive Technologies segment.

The Buy rating is unchanged.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.40 cents.
Ord Minnett forecasts a full year FY26 dividend of 0.00 cents and EPS of 5.40 cents.

04/11/2024

1

Buy

$1.40

41.41%

Trajan Group has retained FY25 guidance despite challenges in the pharma segment and lower capital equipment demand, notes Canaccord Genuity, with anticipated revenue between $160-$165m and core EBITDA of $17-$19m.

Strength in MOSH/MOAH food testing offsets weaker segments, with the broker commenting recent updates show optimism in a second-half recovery for Pharma.

The broker believes Trajan Group is positioned for potential growth in the food/beverage testing sector and in Asia, while trading at a discount relative to its global peers.

No change to Buy rating and $1.40 target price.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.70 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 2.60 cents.