Citi notes the stock has pulled back substantially and sector sentiment remains weak amid falling steel/scrap prices and minimal buying interest. Still, the broker suspects a market nadir may be close.
Read MoreThe company intends to exit its 50.1% interest in Stratton. UBS considers this a positive move as Stratton provided a minor financial contribution relative to the significant effort by management required to deal with the issues.
Read MoreCredit Suisse has concluded that ongoing weak sales is a more severe earnings headwind for the company, compared with annuity spreads. The company has also guided to FY20, which implies -7-12% downgrades to forecasts.
Read MoreUBS transfers coverage of Charter Hall to another analyst. The target is upgraded to $11.05 from $8.60 and earnings estimates are increased by 10-20%.
Read MoreAUB has downgraded FY19 profit growth guidance to 3-5% growth from a prior 7-12%, citing substantially lower NSW workers comp case volumes and an over-run in the cost of a new underwriting agency IT system
Read MoreMorgans revises forecasts following the release of ABARES’ 2019/20 winter crop forecast. Another below-average east coast grain crop is expected, although it should be better than last year.
Read MoreThe company has provided a trading update on the public cloud business, where the margin contribution has surpassed that of the private cloud. The business has exceeded 530,000 seats on O365 including around 100,000 academic seats.
Read MoreCredit Suisse observes specialty sales for CSL Behring have grown around 15% per annum since FY13, driven in part by Kcentra. The broker believes this product is increasingly used off label to reverse other anti-coagulants including NOAC and control bleeding in trauma situations.
Read MoreAGL had hinted at a desire to move into the telco space at Macquarie’s recent conference but rather than muck around, it has put in a bid for Vocus Group ((VOC)) below the bid that private equity recently withdrew.
Read MoreThe company has appointed Rizing as a distribution partner. Rizing will promote the company’s Talent Community sourcing system in return for a share of recurring licence income. The deal is non-exclusive.
Read MoreThe company has updated on June quarter production, downgrading guidance to 45-50,000t from 50-55,000t. The reason, UBS notes, is the delay to the production improvement plan.
Read MoreBank of Queensland has appointed George Frazis as CEO, to take over September 5. Mr. Frazis was formally the chief executive of the consumer bank at Westpac ((WBC)). Citi expects investors will be optimistic about the appointment and believes Bank of Queensland is well-placed as a likely participant in any industry consolidation.
Read MoreThe company has reduced FY19 guidance, indicating net profit will now be at the lower end of $47-51m. New FY20 guidance, $105m in operating earnings (EBITDA) and $38m in net profit, is below UBS estimates.
Read MoreIluka has finalised a deal with the IFC whereby IFC will invest and aggregate US$60m and take a 10% stake in the Sierra Leone assets. This leads to a -1% decrease in the company’s annual earnings estimate and a slight downward revision in valuation, Citi calculates. Buy rating and $11 target maintained.
Read MoreThe company has provided key metrics in its Australasian business, along with an update on its expansion in the US and UK. The main positive, for Morgans, was US business, which was substantially higher in terms of sales, merchants, and customers in the second half.
Read MoreUBS observes strong equity markets and volatility in interest rates support stronger second half activity. Average daily cash equity turnover is now up 8.5% while futures volumes are running 14% higher.
Read MoreThe company’s investor briefing has shown how the combined business is positioning to capture more work as Jacobs ECR is integrated. Credit Suisse remains comfortable that, pending a smooth integration, leverage to the controlled cost base and new scale will provide unique exposure to the global energy mix.
Read MoreCiti only initiated coverage with a Buy/High-Risk rating and a $3 target in May, about three weeks ago, so there will be a number of unhappy faces at the office. The company management has downgraded production guidance in a significant manner.
Read MoreThe US government has tentatively approved Qantas’ proposed expanded alliance and revenue pooling agreement with American Airlines. The arrangement will mean the two carriers co-ordinate flight schedules, pricing and capacity and share revenue on international routes between the US, Australia and New Zealand.
Read MoreFletcher Building has completed the sale of Formica and disclosed the contribution to FY19 guidance, updating for timing and variations. New guidance range is NZ$620-650m, with a -1.6% downgrade at the midpoint from prior guidance.
Read MoreAbacus Property and Charter Hall ((CHC)) have acquired a 19.9% strategic interest in Australian Unity Office Fund ((AOF)) for $95.6m, equivalent to $2.95 per unit. Australian Unity Office has since released a notice to ASX stating it has received an unsolicited takeover proposal.
Read MoreThe company has announced the acquisition of Halcyon Knights, an IT recruitment company, for $13.5m. This will increase People Infrastructure’s exposure to the sector and Morgans estimates an increase to FY20 earnings per share of 16%.
Read MoreThe broker initiates coverage of Abacus Property with an Outperform rating, believing the investment fundamentals are becoming more attractive as the business transitions away from being a real estate trader towards acquiring assets offering recurring revenues, specifically self-storage, which the broker sees as continuing to grow strongly.
Read MoreThe company has acquired QuantHouse for EUR38.9m, to be funded by debt. The business is expected to incur a minor loss in 2019 but should be accretive to earnings in FY20.
Read MoreThe company has revised FY19 operating earnings guidance (EBITDA) to $350-360m and operating net profit to $195-205m. This is below Morgans’ estimates. Issues reflect the impact of Brexit on the asset services business and headwinds in funds administration from client migration, as well as elevated resourcing costs.
Read MoreIn response to media speculation, AGL has confirmed the withdrawal of a non-binding indicative offer for Vocus Group ((VOC)), having not agreed due diligence terms.
Read MoreCredit Suisse believes a strong positive reaction in the share price to the first half result stems mainly from evidence that the underlying fleet and novated lease business is holding a relatively flat trajectory.
Read MoreMorgan Stanley considers the potential finalisation of the acquisition of a 10% equity stake in Sierra Rutile by the International Finance Corp is a positive. This would add significant local knowledge to an operation that has suffered from an expected 40-60% increase in capital expenditure and unlawful strike actions.
Read MoreIt was a litany of disaster for Costa in May. Variable harvest conditions for Moroccan blueberries, not cold enough for mushroom demand, crumbly raspberries and a fruit fly-spotted in one of the companies seven citrus orchards.
Read MoreMelco will purchase 19.99% of Crown Resorts at $13 a share in two equal tranches. The stock is being purchased from the Packer holding.
Read MoreMacquarie has surveyed 40 travel agents, airlines and hotel operators to gauge recent travel trends. The consensus view is that conditions are subdued for both domestic and international travel. Global political uncertainty and corporates mandating travel freezes of varying degrees are having an impact.
Read MoreReports suggest Australia’s flu season is extensive and well ahead of any of the previous five years at this early stage. Morgan Stanley believes this will translate into strong support for sales in the fourth quarter of FY19 and first quarter of FY20.
Read MoreChannel checks of the auto market conducted by Credit Suisse suggest after-market growth is trending lower and competition is increasing among part suppliers
Read MoreThe broker notes Incitec Pivot’s PE discount to peer Orica ((ORI)) is now the largest in a decade, leading the broker to favour the former over the latter.
Read MoreDowner EDI has disclosed that its partner at the Murra Warra wind farm, Senvion, has filed for self-administration in Germany. Senvion is responsible for the manufacture, transport, erection, and commissioning of the turbines and Downer for the balance of plant works.
Read MoreThe Roma North gas facility was commissioned on May 27. The company is on track to deliver processed sales gas to GLNG by mid-2019. The main concern for Credit Suisse is the pace of the production ramp-up upstream rather than the processing facility.
Read MoreWith the prospect of Adani’s Carmichael mine being approved in Queensland, Deutsche Bank believes the market should now be paying for Whitehaven Coal’s growth.
Read MoreThe re-starting of US blast furnace capacity has caused a slump in US steel prices and put the steel market into surplus, constraining the price that US EAF steelmakers can pay for scrap. Recent tariff reductions have made this worse.
Read MoreMacquarie assesses the FY19 outlook has softened a little, as the airline is unable to pass on higher fuel costs to customers in the current demand environment. The stock offers a strong dividend yield, which is sustainable, given the balance sheet and recent deferrals of capital expenditure.
Read MoreAusdrill has announced a three-year extension of the equipment hire contract with Peabody at $126m. Deutsche Bank suspects there was likely to be a marginal price increase to reflect tighter equipment availability and potentially better terms.
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