UBS has downgraded its 12-month price target for Boom Logistics to 50 cents from 55 cents after the crane hire and lifting services company said in its earnings update that the industry remained tough and operating earnings weak. Boom reaffirmed it full-year net profit guidance of between $2 million-$5 million and said the result was likely to be towards the upper end of this range because of one-off tax items.

UBS reiterated its “buy" rating on the stock given it is trading at a discount to its net tangible asset backing, which was 51 cents at April 30. The broker said the decline in Boom’s net tangible assets suggests the company had a very weak March quarter, but it expects the company to benefit from the uptick in mining and construction activity.