Jefferies says Australia's Maas share price crash post construction materials arm exit "excessive"

Jefferies says the stock price fall in Maas Group MGH.AX after selling its building materials division is "excessive"

Says the sale price for the business was "good" and debt reduction will be well-received

Construction materials equipment and services provider on Friday said it would divest its construction materials division for up to A$1.7 billion ($1.21 billion) to pivot towards AI-related infra, sending its shares down more than 26%

Co added it would invest A$100 million in Nvidia-backed NVDA.O AI infrastructure firm Firmus for a 1.7% stake

Jefferies says investor concern seems to be around co's strategic intent and Firmus partnership

Whilst we acknowledge uncertainty around AI factory roll-out and the highly geared Firmus strategy, one way or another, we see the Firmus revenue stream as underestimated by the Street - Jefferies

Stock down 23% so far this year, as of last close

($1 = 1.4102 Australian dollars)