Ord Minnett Research Woolworths Group (WOW) announced the much-anticipated sale of its petrol business to European and North American convenience and fuel retailer EG Group for $1.725 billion(¥189,750,000,000). Ord Minnett derives a pro-forma FY19E enterprise value to operating earnings (EV/EBITDA) transaction multiple of 6.8x, in line with or above recent Read more…
Ord Minnett Research Deutsche Bank Research BHP – 15% (plus tax rebate) harvest BHP – Ticker: BHP.AX, Closing Price: 33.11 AUD, Target Price: 36.00 AUD, Recommendation: Hold. We view BHP’s A$10.4(¥1,100)bn returns program as particularly friendly to Australian shareholders given the tax component on both legs. A 50/50 off-market buyback Read more…
Ord Minnett Research Deutsche Bank Research Healthscope Limited – 1Q trading update and expected value of property assets – Ticker: HSO.AX, Closing Price: 2.10 AUD, Target Price: 2.26 AUD, Recommendation: Hold. 1Q trading update – strong growth off a low base – The Hospitals division achieved operating EBITDA growth of Read more…
Ord Minnett Research Deutsche Bank Research Newcrest Mining – Cadia site visit – plenty of time to pull the recovery levers – Ticker: NCM.AX, Closing Price: 20.76 AUD, Target Price: 23.00 AUD, Recommendation: Buy. We recently visited NCM’s Cadia mine near Orange, NSW. Over the last two years the operation Read more…
Ord Minnett Research Deutsche Bank Research Wesfarmers Ltd – Little Shop, big sales – Ticker: WES.AX, Closing Price: 47.33 AUD, Target Price: 48.00 AUD, Recommendation: Hold. Sales were always going to be strong but seem to have normalised – Coles’ supermarket sales were always going to be strong given the Read more…
Ord Minnett Research Deutsche Bank Research Australian Banking Sector – The Bank Vault: Valuation charts -Bank sector – valuation metrics. Inside this week’s Bank Vault we highlight key bank valuation trends over the last month, and take a look at the week’s regulatory news. The major banks’ avg 12m fwd Read more…
Ord Minnett Research Deutsche Bank Research South32 (S32) – aluminium advantage: Buy retained S32 has 3.2mt of excess alumina that gets sold into the spot market. The Norsk Hydro news earlier in the week has tightened the market, and the 1.4mt aluminium deficit we forecast in 2019 could Read more…
Ord Minnett Research Morgans Research Call to action – Australia Strategy – Refundable franking credits and retirees Labor’s proposal to scrap cash refunds of surplus franking credits has created unwanted angst for affected retirees. Public debate is intensifying as these retirees point out that this proposal adversely affects their long Read more…
Ord Minnett Research Morgans Research Call to action – High Conviction Stocks – October We currently expect the S&P/ASX200 index to finish the year at 6,300 but the outlook particularly this late in a sustained business cycle is becoming more vulnerable given the prevailing macro-economic risks. Equity market valuations remain Read more…
Ord Minnett Research Deutsche Bank Westpac Alert – Legal and remediation costs to impact FY18 result – Ticker: WBC.AX, Closing Price: 27.81 AUD, Target Price: 31.00 AUD, Recommendation: Buy. $235(¥25,850)m profit impact on FY18 from refunds and litigation provisions – After the market close today, WBC announced it expects an Read more…