The company will acquire Uni-span for $21.25m. Morgans estimates FY21 accretion of 29%. There is further upside likely if management can generate revenue synergies and/or exceed cost synergy expectations.
Read MoreThe company is proposing a merger with Prime Media ((PRT)) through a scrip-based arrangement. Each Prime Media shareholder will receive 0.4582 in Seven West shares.
Read MoreA combination of falling car sales in the company’s categories and an appreciating Thai baht has meant ARB Corp now expects net profit to be weaker than the prior first half.
Read MoreThe company will sell its 26% interest in the joint venture with State Bank of India. Total consideration is over $640m with an expected increase in Insurance Australia Group’s regulatory capital position of over $400m once the transaction completes.
Read MoreAlumina’s production numbers were largely in line with Macquarie’s expectations but realised prices surprised to the upside. AWAC JV partner Alcoa has announced a review into up to 4mtpa of alumina production and 1.5mtpa of aluminium production.
Read MoreSeptember quarter production was -10% below UBS estimates with costs 12% higher. The broker suggests, being the fourth quarter of weaker-than-expected production, market confidence has been dented and this is potentially affecting the company’s premium valuation.
Read MoreSeptember quarter production was slightly weaker than forecast but, importantly, Carrapateena remains on track for first production in November.
Read MoreConfidence in the existing game portfolio and operating momentum supports assumptions for the company’s land-based business, Credit Suisse suggests. The broker values the stock on the assumption the company’s predilection to invest will uphold an expanded market share.
Read MoreAfter a challenging period for Challenger, Sep Q total book growth exceeded expectations thanks to Japanese annuity sales and growth in guaranteed income products. Local fixed-term sales are holding up, Macquarie notes, despite low-interest rates.
Read MoreFirst-quarter production was weak, although grades at Cowal allowed production to be in line with Morgan Stanley’s estimates. Cost guidance for FY20 has increased to $940-990/oz.
Read MoreWhile ad markets have continued to be choppy across broader media, Macquarie was surprised by the extent of Southern Cross’ guidance downgrade. Channel checks reveal weakness is across the board, not just in any one sector. The broker has reassessed its general media assumptions.
Read MoreSeptember quarter production, up 22%, was slightly ahead of Morgans’ estimates. Revenue from gas sales was up 32% versus the prior quarter, supported by higher gas prices from new contracts and better production, which offset lower revenue from oil.
Read MoreCarnarvon’s Sep Q drilling and corporate costs were in line with the broker’s expectation. Following the company’s recent capital raising it should be well funded to progress the Dorado prospect through to completion of front-end engineering & design (FEED).
Read MoreWhile the stock is priced for a recovery in geochemistry Credit Suisse finds little evidence this is occurring. The focus at the result is likely to be on the volume growth in geochemistry and continued margin improvement in life sciences.
Read MoreSantos will acquire ConocoPhillips’ northern Australian assets for $1.39bn. The transaction will be funded from free cash flow and $750m in new debt facilities as well as a 25% equity sell-down of Bayu-Undan and Darwin LNG.
Read MoreFirst-quarter trading has revealed the company’s strategies are gaining momentum, with Citi noting the business has stabilised. The broker expects Michael Hill will focus on improving Canadian sales productivity and expanded its product range.
Read MoreCredit Suisse notes the revised definitive feasibility study for McPhillamys is due in the first half of FY20 and may reveal improved economics on incorporating the higher-grade satellite, Discovery Ridge.
Read MoreRamsay’s UK NHS admissions rose 1.8% year on year in August — a good result, the broker notes, given an 8.0% increase in FY19 — however 12-month rolling growth eased to 3.0% from 3.4%. Current admissions and a tariff increase bode well for NHS revenue in FY20, but the increased use of agency nurses to handle the workload reduces margin expectations, the broker points out.
Read MoreCiti initiates coverage on the Australian waste management sector, rating Cleanaway Waste Management a Buy with a $2.40 target.
Read MoreAhead of ResMed’s Sep Q results, the broker has made adjustments for forex and tax assumptions, leading to modest earnings downgrades. Target unchanged at US$140 (A$20.75 at current spot).
Read MoreThe company will sell its Australasian fibre business to Nippon Paper for $1.72bn. The transaction represents an FY19 adjusted operating earnings (EBITDA) multiple of 11.5x.
Read MoreThe draft decision on the South Australian Power Networks has confirmed Morgans’ view that distribution revenue will fall. A lower capital expenditure budget also means a slowdown in regulated asset base growth.
Read MoreA move by corporates towards sustainability has been weighing on Amcor’s share price, Macquarie notes. Major customer Unilever has now announced a plan to make all its packaging reusable and recyclable by 2025, including a move toward a circular economy of collection and reprocessing.
Read MoreThe $50m capital raising was larger in size than Citi analysts had anticipated. The flip side of that is the company now has plenty of funds to deliver on its FY21 ARR target, the analysts surmise. The acronym stands for annualised recurring revenues.
Read MoreThe company has pre-released September quarter gold production, the first to include the newly-acquired Mako mine. Overall, production beat Citi’s estimates by 5%.
Read MoreANZ Bank has announced additional remediation charges of $559m. Unlike National Australia Bank’s ((NAB)) recent additional charges, this does not relate to financial advice but rather to product reviews and fee & interest calculations.
Read MoreBaby Bunting has reiterated FY20 guidance for operating earnings (EBITDA) of $34-37m and net profit of $20-22m. Morgan Stanley notes the expected gross margin of 36.6% is ahead of expectations.
Read MoreSydney Airport has started to re-negotiate access agreements. Macquarie assesses the company is facing a more challenging slot environment, as competitors, such as Western Sydney, Melbourne and Brisbane, are adding runway capacity.
Read MoreContinuing operations at Gwalia and Simberi were weaker in the September quarter, Credit Suisse notes. However, the company’s recently-acquired Atlantic Gold has performed in line with expectations and offset the weaker contribution from Gwalia and Simberi.
Read MoreUBS believes the company simplification and strategy update is well articulated, with a renewed focus on the core fleet and novated business. The cost base is expected to reduce materially by FY22.
Read MoreThe company is in the final stages of fitting out new premises and expects to commission its first 500tpa of equipment in the current quarter. The first anode contract is expected in the third quarter of FY20.
Read MoreFirst-quarter activity trends were marginally stronger than Credit Suisse expected. Strength is predominantly in equity post-trade services and trading, offsetting slightly weaker-than-expected derivative and OTC activity.
Read MoreUBS downgrades to Neutral from Buy, believing risks are now more balanced. The broker assesses the market is pricing in a solid outcome for the sale of the engineering & services business.
Read MoreThe company has received Therapeutic Goods Administration approval for its paediatric cough diagnostic. This follows CE Mark approval for both children and adults which allows the company to market the device across Europe.
Read MoreThe company has signed an exclusive licence and supply agreement to commercialise a combined oral contraceptive in the US for total consideration of US$295m. The product is to be launched in the second half of FY21, subject to FDA approval.
Read MoreThe bank will take $1.19bn in additional remediation charges in the second half in its results. This top-up is driven by the inclusion of provisions for customer refunds for self-employed advisers.
Read MoreAllowing for a small reduction in profit as a result of the sale of Capital SMART and ACM Parts to AMA Group ((AMA)), Citi reduces estimates for earnings per share in FY20 by -1%.
Read MoreThe company continues to widen distribution channels and has added three new partners in the September quarter. Morgans points out new partners do not increase revenue immediately but increase the odds of meeting revenue forecasts over time.
Read MoreAfter reviewing the outlook for plastic pallets, UBS suspects new capital will likely be deterred by the risks involved and the long-dated return profile.
Read MoreCredit Suisse has reviewed forecasts for bulk commodities, reducing near-term metallurgical coal price estimates by -27% for the fourth quarter of 2019 and by -15% for 2020.
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