iSelect Limited (ISU) – SELL
Since our sell recommendation, the stock is down ~-63.5% and has played out consistently with our investment thesis. iSelect (ISU) announced ugly albeit as expected FY18 results.
Bendigo & Adelaide Bank (BEN) – NEUTRAL
Bendigo and Adelaide Bank (BEN) reported solid FY18 results, which were in line with market expectations. Earnings (underlying cash NPAT) was up +6.4% to $445.1m, return on equity (ROE) was up +13bps to 8.23% but return on tangible equity (ROTE)...
REA Group Ltd (REA) – NEUTRAL
REA reported another solid set of results, delivering double-digit growth across key trading metrics. Relative to the previous corresponding period (pcp), group revenue increased +20.3% to $807.7m, EBITDA increased +21.7% to $463.7m.
Suncorp Group Ltd (SUN) – NEUTRAL
SUN’s FY18 cash profit for the full year came in ahead of consensus estimates, with management announcing a special dividend of 8cps along with the final dividend of 40cps.
Baby Bunting Group (BBN) – BUY
Baby Bunting (BBN) reported solid FY18 results. In prior research reports, we have commented extensively our thoughts on how BBN competes against competitors and specifically implications of Amazon’s forays into Australia – we rated the management team and strategy highly...
Mirvac Group Ltd (MGR) – BUY
MGR’s FY18 operating profit (after tax) of $580m was up +8% on prior year and came in ahead of consensus estimates of $577.2m. The Company provided FY19 operating EPS target of $0.168 – 0.171 and distribution target of $0.116 (which...
SCP Property Group (SCP) – NEUTRAL
SCP Property Group’s FY18 results were solid with Funds From Operations (FFO) of $114.3 m, up by +5.4% on the prior year and distribution of $0.139, up +6.1% on the same period last year (equates to a payout ratio of...
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.
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...
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%...