Given quarterly reporting, there were no surprises for Morgans contained within Mitchell Services' 1H results. The broker repeats that despite management's strong outlook, the shares remain at a stark discount to listed peers.

A new rig deployment and the easing of pandemic and wet weather headwinds should combine to build margins in the 2H, according to the analyst.

Even capital management potential is anticipated by Morgans, as the company will approach net cash by the end FY23.

Sector: Capital Goods.

Target price is $0.66.Current Price is $0.35. Difference: $0.31 - (brackets indicate current price is over target). If MSV meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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