Bhagwan Marine (ASX:BWN) disappointed the market with a core business earnings miss after an earlier equity raise to purchase Riverside Marine, which adds earnings quality, margin, and visibility, Euroz Hartleys said in a note on Wednesday.
Investors are now cautious about the ability of Bhagwan to deliver consistent earnings in the context of marine infrastructure, defense, decommissioning, and port volumes.
Euroz Hartleys pulled 2027 combined business earnings before interest, taxes, depreciation, and amortization (EBITDA) back to AU$66 million.
The investment firm retained its buy rating on Bhagwan Marine, while the price target was reduced to AU$0.53 per share from AU$0.87 per share.