Capital (LSE:CAPD), the London-listed mining services group, is trading at a valuation Panmure Liberum's Joe Brent calls "materially cheaper than peers".
The broker repeated a Buy rating, and a 236p price target, following first-half results that delivered record revenue of $219m, up 37.6%, and earnings before interest, tax, depreciation and amortisation (EBITDA) of $54.7m, 6.3% ahead of the broker's estimate.
Brent flags three points behind the call: Barrick's Reko Diq contract continues to perform well, with Capital's ongoing support seen as evidence of the relationship's durability despite Barrick's wider development slowdown elsewhere.
The analyst also pointed to a supportive macro backdrop, noting the return of the "stagflation" trade favouring copper and gold, alongside elevated capital raising activity and customers generating record cash levels.
A third pillar is Capital's investment portfolio, valued at $117m as of 30 June, which the broker says has compounded at a 59.9% annual rate since 2019.
Despite the revenue beat, Panmure Liberum has left its pre-tax profit estimates unchanged, citing additional mobilisation costs expected in the second half.
