Best calls to action: 26 August 2015
About the author:
- Author name:
- By Tom Sartor
- Job title:
- Senior Analyst
- Date posted:
- 26 August 2015, 9:53 AM
- Sectors Covered:
- Junior (Emerging) Resources, Bulk Materials
Happy to Buy today
Healthscope Limited (HSO) - A healthy prognosis
FY15 underlying results were solid and in line, underpinned by strong performances in the core Hospital division and International Pathology, with ongoing operating efficiencies helping to expand margins and drive strong cash conversion.
While variation in capacity expansion phasing is likely to make near-term volumes lumpy and the focus on quality-based contracting with health funds remains an ongoing discussion, we remain confident in the earnings trajectory, as capacity expansion programs remain on-track, a defensible reputation for quality and service appears unwavering and industry fundamentals are favourable. View full report (Morgans clients only).
Amcor Limited (AMC) - The complete package
AMC’s FY15 result was slightly better than we expected despite subdued global macroeconomic conditions. In our view, the result highlights the high quality, defensive nature of the business, which we think should be well supported in the current volatile market environment. Add rating maintained. View full report (Morgans clients only).
Campaign stocks
Adairs Limited (ADH) - A hard to fault maiden performance
ADH's maiden result (c6% ahead of prospectus forecasts) was hard to fault, in our view, with a lower than expected GM the only blemish. Like-for-like sales momentum remained exceptionally strong into year end, providing a strong run-rate into FY16 (well ahead of prospectus forecasts).
ADH is undoubtedly benefiting from a strong housing market tailwind, but it is also controlling its own growth via new store rollout, product innovation and cost control. Add rating maintained. View full report (Morgans clients only).
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.