The bank, which retains a ‘buy’ rating on the Africa-focused mining services company, said quarterly revenues of US$35.3mln beat its US$33.5mln forecast.
Analysts bumped up the full-year revenue forecast to US$136mln from US$133mln.
Capital noted that it remains in advanced discussions in the contract mining business and that it continues to gradually build fleet in preparation for its entry into this market.
“We would hope that Capital is in a position to announce a contract mining win in the fourth quarter, and… there is significant revenue, underlying earnings (EBITDA), free cash flow and valuation upside in this fledgling business,” Berenberg commented.
“We continue to believe the shares (trading at 3.5x EBITDA) are mispriced, particularly given compelling cyclical fundamentals in the drilling business and clear upside in the contract mining business.”
Shares rose 1% to 65.7p on Tuesday before close.