Category: Analyst Research

Analyst Research

Commonwealth Bank (CBA) – NEUTRAL

Commonwealth Bank’s (CBA) FY18 result came largely in line with consensus estimates and, frankly speaking, weren’t as bad as some may have anticipated. Nonetheless, key headwinds we have highlighted before were evident in the second half of the year and…

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Folkestone Education Trust (FET) – BUY

Folkestone Education Trust (FET) has been the best performing A-REIT on the S&PASX300 Index over a 10 year period, and second over a 5 year period (as of 30 June 2018).

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TabCorp Holdings (TAH) – NEUTRAL

Tabcorp’s FY18 results were largely in line with our estimates. In our view, its core Wagering business continues to be impacted by structural trends (shift to online wagering), competitive pressures in retail and cost pressures.

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AMP Limited (AMP) – BUY

Since we downgraded the stock to Sell on corporate governance issues, the share price has declined -19.4%. We pre-warned that poor market sentiment would affect the stock price but highlighted how we could not quantify how much bad press and…

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Navitas Ltd (NVT) – NEUTRAL

Navitas (NVT) reported disappointing FY18 results in our view given the write-downs (but the results were largely in-line with market expectations); with revenue of A$931m (down -3.0%), EBITDA of A$82m, -47.0% lower than FY17 equating to a margin of 8.8%…

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Transurban Group (TCL) – BUY

Transurban (TCL) again delivered a solid result with toll revenue and operating earnings (EBITDA) up +8.7% and +10.2%, respectively, on previous corresponding period (pcp).

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Amcor Limited (AMC) – BUY

Amcor (AMC) has announced that it will acquire Bemis (NYSE: BMS) in an all-stock US$6.8bn transaction, which is unanimously supported by the Boards of both companies. The combined group will have revenues of US$13.0bn and EBITDA of US$2.2bn.

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ResMed Inc

RMD’s fourth quarter FY18 (4Q18) results came in line with market expectations, with revenue of US$623.6m +12% above pcp and adjusted EPS of US95cps +23% above pcp.

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Afterpay Touch Group

Afterpay Touch Group (APT) has provided a very strong sales update for the fourth quarter FY18 (4Q18) and full year (FY18), which saw its share price re-rate more than +37% in a few days.

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Nufarm Ltd

Nufarm Ltd (NUF) provided a trading update which in many ways was largely expected by the market given the growing conditions its ANZ business has experienced recently and peer group updates.

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Telstra Corp

TLS annual strategy day had a number of new details which warrant some attention. The overarching view is that the short to medium term outlook for the Company (and in fact for the industry) is challenging.

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Thematic Investing: Uranium – deep value or trap?

The uranium spot price is down 70% (since Jan 2011), with the bear market now in its 7th year. Uranium equities have been decimated over the same period. The number of miners has declined from 500 to 40. Fukushima – Japan Nuclear disaster – in March 2011 was the catalyst for the start of this bear market.

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