Canaccord Genuity reiterated its Buy rating on Imdex Limited (IMD:AU) (OTC: IMDXF) and raised its price target to AUD 2.67 from AUD 2.25. The company’s analysis confirms Imdex’s performance in the face of deterioration in the mineral exploration industry.
Despite a 25% global drilling reduction in the September quarter compared to the prior-year period (pcp), Imdex saw revenue decline by just 11% compared to pcp, representing a 3% quarter-on-quarter increase.
Imdex’s relative outperformance comes at a time when the company is showing signs of positive margins and the exploration market is starting to show signs of recovery. The company’s commentary suggests that Imdex’s current valuation is not considered particularly low based on its fiscal 2025 (25) outlook, but anticipates a return to higher growth levels in fiscal 2026 (26).
The company’s forward price-to-earnings (PE) ratio for FY26 is 16.6, which Canaccord Genuity believes creates room for potential multiplex expansion with earnings growth expected to accelerate. The increase in Imdex’s target price reflects the company’s confidence in the company’s future performance and the expected positive trajectory of the exploration market.
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