Australia's Perenti gains as Citi notes improved drilling momentum

Shares of Australia's Perenti PRN.AX rise 3.1% to A$2.98, their highest since January 20

Citi expects a "solid" first-half result from diversified mining services co, citing better exploration outcomes, discipline on return hurdles and on capital allocation

However, Citi expects co to reiterate FY26 guidance, with scope for progressive upgrades throughout the second half of the year, anticipating more capital discipline

Sees ample tailwinds, including more opportunities for contract mining worldwide and an uptick in drilling services stemming from the exploration upcycle

While drilling services are typically 1H skewed, FY26 could see 2H skew with progressively improving momentum -- Citi

Says remains upbeat on co, reiterates "buy" rating

Stock up 6.6% YTD, after doubling in 2025