Best calls to action: 25 August 2015
About the author:
- Author name:
- By Tom Sartor
- Job title:
- Senior Analyst
- Date posted:
- 25 August 2015, 11:58 AM
- Sectors Covered:
- Junior (Emerging) Resources, Bulk Materials
Strong results/upgrades
M2 Group (MTU) - Value + big growth = time to buy
MTU delivered a better than expected underlying result and strong outlook commentary. Excluding one-off M&A costs, reported profit and the dividend were up 23% year-on-year, and ahead of guidance. FY16 is set for 30-35% reported profit growth and importantly currency risk on the NZ business has been hedged out. The strong growth outlook and recent share price weakness prompt us to upgrade MTU to an Add.
Select Harvests (SHV) - Going from strength to strength
SHV reported a solid FY15 result. Positive industry fundamentals should see almond prices remain firm in FY16. The spot price is currently over A$13.00/kg (A$11.45/kg in FY15). SHV is also a key beneficiary of a lower AUD. Therefore, in the absence of any adverse weather events, SHV should report strong earnings growth in FY16. Add maintained and an upgraded share price target.
APN Outdoor (APO) - Riding high
Exceptionally strong growth in outdoor advertising demand, digital conversion and recent contract wins drove APN Outdoor to upgrade its full-year earnings guidance after an exceptional first half. Add maintained and an upgraded share price target.
Bellamy's Australia (BAL) - What a year
BAL's first year as a listed company has been nothing less than an outstanding success story. Importantly, we expect plenty of growth to come in both Australia and overseas. BAL continues to benefit from a parent's preference to feed their child organic infant formula and baby food from a strong and trusted brand. Add maintained and an upgraded share price target.
More information
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Disclaimer(s): An Analyst or Analysts in the Morgans Research Team may own shares in some or all of these companies.
The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents ("Morgans") do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
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