Moving in the right direction

Hunting’s AGM update says that FY25 has started well and our expectation of growth in all 3 estimate years is unchanged. Its share price has been hit by wider market sentiment; its valuation looks attractive against a range of comparator benchmarks. After strong group progress in FY24 (with revenues and EBITDA norm ahead by 13% and 23% y-o-y respectively). Further revenue growth and margin expansion up c. 200bp to 14% in Q1 has driven a 34% EBITDA uplift (to U$38.7m). After the FY24 results announcement, we re-balanced estimates (lowering FY25E EBITDA and raising FY26E by similar mid, single-digit percentages) chiefly to reflect expected phasing of the next larger OCTG orders. While remaining vigilant to potential secondary effects, mana...