The company’s trading update significantly exceeded Morgans’ expectations. The broker believes the company is high-quality and upgrades forecasts substantially. Transaction value in FY19 is expected to grow 44%.
Read MoreAPRA has taken action against the company for failing to act in the best interest of members. Macquarie remains concerned about the implications, given the potential for flow-on effects and civil proceedings as well as risks to the completion of the ANZ transaction.
Read MoreThe company has downgraded 2018 net profit guidance by -7%, to $188-195m. UBS calculates the downgrade implies a -11% reduction to December half earnings.
Read MoreThe company will sell its Australian consumer tissue business for $180m. As this business is losing money Citi believes this is a good decision for shareholders. The broker lifts estimates for earnings per share by 35% in FY19 and 23% in FY20.
Read MoreThe final decision on UT5 from the Queensland Competition Authority has been released, and it was better than Macquarie expected with revenue of $4.12bn allowed. Clarity is a positive, although the broker notes Aurizon has lost the battle in this instance.
Read MoreUBS notes enrolments have stabilised but remain mixed. Canada is the main driver of North American growth but universities are close to full capacity. EU growth is underpinned by the favourable immigration environment.
Read MoreDeutsche Bank notes from the company’s R&D briefing that CSL believes the development of anti-FcRn drugs will have a place in simple autoimmune disease but is not convinced of the long-term safety issues.
Read MoreThe company has a draft agreement to shift to distance-based tolling on Greenway. This would incur a large capital cost and the major benefit would be long-term certainty on pricing. This is not a surprise to Macquarie, as it was recommended back in 2016.
Read MoreCiti believes the future for 5G is bright, with incremental revenue from new business, particularly in the enterprise segment. However, most services will need much higher bandwidth and this cannot be delivered until additional spectrum becomes available, expected in FY21-22.
Read MoreMacquarie observes growth in Germany is subdued and there are challenges in that region as well as in the US because of reduced reimbursement. However, the broker also considers the changes present opportunities for acquisitions.
Read MoreThe company will acquire Propeller Health, a US provider of monitoring devices for those with COPD and asthma. The purchase price is US$225m, to be funded by debt.
Read MoreIOOF’s AGM revealed the fund manager will put away a mere $10m in estimated remediation cost in the wake of the RC.
Read MoreFirst half margins in food declined, despite some improvement in sales. This suggests to Deutsche Bank that cost reductions are no longer sufficient to offset cost inflation.
Read MoreMorgans reduces forecasts to reflect near-term challenges being caused by changes to Google search engine algorithms. The broker also includes forecasts for the TeePublic business that was recently acquired.
Read MoreThe company will close three production facilities – 2 in Mexico and one in South Korea – to streamline its manufacturing footprint and generate more cost savings, expected to be more than US$20m per annum.
Read MoreRio Tinto has approved the US$2.6bn capital expenditure to develop the 43mtpa Koodaideri iron ore mine in the Pilbara.
Read MoreMorgans believes FY19 will be another transition year for the company, with increased investment in both Australian beverages and Indonesia. The broker expects earnings to fall marginally followed by moderate growth in FY20.
Read MoreMorgan Stanley considers the slowdown in China temporary and believes the market should look through recent weakness. The broker downwardly revises earnings forecasts by -2-6% to reflect a slower Chinese market.
Read MoreMedusa Mining expects improved production and exploration upside in FY19 after commissioning the E15 server shaft at Co-O gold mine. Nevertheless, until there are some benefits to be observed from the development Citi maintains a Neutral/ High-Risk rating.
Read MoreThe company will acquire five businesses that specialise in the sale and distribution of Japanese truck parts. UBS observes this will strengthen its position in supplying parts to small and medium-size commercial vans and trucks that are experiencing strong growth in demand from the rise of online retail deliveries.
Read MoreDeutsche Bank considers the acquisition of Pollock Packaging for US$80.5m as a minor positive. The business appears to be a good fit strategically, although Orora will have to achieve the targeted synergies of US$6m to ensure it is accretive to value.
Read MoreThe company has announced an equity raising to pay down debt and fund the CEREIT acquisition. The $300m equity raising will be via a rights issue. Macquarie calculates this is around -5% dilutive to FY19 earnings in isolation.
Read MoreFirst-half results beat UBS estimates and KFC Australia impressed with operating earnings growth of 24%, supported by 14% growth in stores. An unusually hot summer in Europe affected sales, down -2.5%.
Read MoreMorgan Stanley observes 2018 is turning out to be messy. Earnings are clouded by accounting issues, refurbishments and M&A. The broker reduces forecasts following the October downgrade, given an accelerated decline in the number of deaths in June-August.
Read MoreThe company’s site trip presentation reveals strip ratios at 1.5x from FY19-23 and a life-of-mine average of 2.4x. This is a positive development, in Morgan Stanley’s view, and base case valuation could rise, assuming no other charges.
Read MoreMorgans was pleasantly surprised at the AGM as the company has announced the full closure of all RSS centres from January 1, 2019.
Read MoreSaracen has provided a strong exploration update featuring positive drilling results in all areas, Macquarie notes. The broker anticipates mine life extension at Deep South and expects Thunderbox to accelerate now underground drilling is underway.
Read MoreComputershare is a highly cyclical stock and Morgan Stanley believes the earnings risks for FY20 are building. Three warning signs the broker highlights are the slump in US/UK equity markets, which are down -10-12% from their peaks, predictions of a rolling bear market and the fact that competitors are flagging softer UK plan activity because of elevated uncertainty around Brexit.
Read MoreFisher & Paykel Healthcare’s results were in line with expectations. Hospital division revenue grew 11%, supported by new applications. Homecare was also better than Citi expected, amid strong device growth.
Read MoreThe trading update has revealed challenging automotive conditions. Guidance implies a strong recovery in the second half but Macquarie believes the downside risks persist.
Read MoreFY19 net profit guidance of $56-59m is -2-7% below UBS estimates. The company has indicated trading was slower than expected over the first four months of FY19.
Read MoreGVC Holdings will acquire Neds International. Deutsche Bank observes the company’s rationale is scale and proprietary technology, as GVC has ambition to be the market leader.
Read MoreThe company has indicated like-for-like sales in the first 20 weeks of FY19 are up 2.5%. This is broadly in line with Morgans’ estimates.
Read MoreAt the investor briefing, the company provided no further update on its outlook. Macquarie believes there is solid earnings visibility and clear long-term growth options, while management execution is a key ingredient.
Read MoreLast July saw the federal government ban gross combination mass (GCM) upgrades for new vehicles, meaning upgrades to vehicle weight/towing capacity, which ARB provides.
Read MoreManagement has stated the performance in the year to date has been in line with expectations and FY19 guidance is reaffirmed for underlying net profit of or above $100m. All divisions are expected to have stronger second half earnings.
Read MoreAfter the de-merger of Coles ((COL)) more than 50% of the company’s operating earnings (EBIT) will come from Bunnings. Macquarie’s survey indicates a slowing residential market may ultimately lead to slower sales for Bunnings and weak seasonal conditions in NSW also impinge.
Read MoreThe Reject Shop has received a takeover bid from Allensford. The on-market offer is $2.70 a share and the bidder will seek to purchase all shares through to the close of trading on January 7, 2019.
Read MoreSonic reiterated FY19 guidance at its AGM, albeit with a slight tick-up on an A$ adjustment, expecting a typical second-half earnings skew. Guidance nonetheless depends on no further regulatory changes outside those already known for the US and Germany.
Read MoreManagement has guided to first-half revenue being down -10% versus the prior corresponding half. Deutsche Bank had been forecasting a decline of -15%.
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