Category: Analyst Research

Analyst Research

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.

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Challenger Ltd (CGF) – BUY

Challenger Ltd (CGF) reported mixed FY18 results over a period that was largely impacted by higher levels of capital following the $500m MS&AD equity placement.

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Aurizon Limited (AZJ) – NEUTRAL

AZJ reported FY18 results as expected. Key highlights include EBIT up 6% to $940.6m driven by: (1)  Coal up $8.6m (2%) on +7% higher volumes but partly offset by higher costs due to price escalation and costs to add capacity…

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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)…

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JB Hi-Fi Limited (JBH) – BUY

JBH delivered a solid FY18 result which came in ahead of management’s guidance and consensus estimates. The core Australian business continues to perform strongly (delivering double digit earnings growth) whilst The Good Guys and NZ are facing some challenges, although…

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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.

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Magellan Financial Group (MFG) – NEUTRAL

Magellan Financial Group (MFG) FY18 results were strong in our view. Key highlights to FY18 results were: (1) average funds under management (which increased by 29% from $45.7 billion to $59.0 billion); (2) profit before tax and performance fees of…

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James Hardie (JHX) – NEUTRAL

JHX reported a solid 1Q19 result with adjusted net profit of US$79.9m +29% above previous corresponding period (pcp) and adjusted operating earnings (EBIT) up +21% on pcp, with EBIT margins slightly weaker (by -0.9%) at 16.5%.

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AGL Energy Ltd (AGL) – BUY

AGL Energy (AGL) delivered a strong FY18 result, with underlying net profit of $1.023bn +28% above prior year, coming in at the upper end of management’ guidance and 2.5% consensus estimates

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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.

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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…

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Uranium Report: Global Leaders Discuss A Possible Industry Bounce-Back

In March 2018, we provided our initial overview of the dynamics which have plagued the global uranium markets for the better part of last 8 years. This prolonged bear market has decimated the industry, which commenced as a result of…

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