Best calls to action: 27 August 2015
About the author:
- Author name:
- By Andrew Tang
- Job title:
- Analyst - Equity Strategy
- Date posted:
- 27 August 2015, 9:26 AM
- Sectors Covered:
- Equity Strategy and Quant
Happy to Buy today
BHP Billiton (BHP) - According to plan
BHP Billiton (BHP) posted a solid result (given the tough environment) that supported the strategy put forward by its management team to prioritise free cash flow and dividends over scale and growth. We view this strategic setting as a key competitive advantage, reassuring us that BHP is focused on maximising capital efficiency during a period of great uncertainty for commodity prices. View further analysis (Morgans clients only).
Corporate Travel Management (CTD) - Strength in diversification
FY15 was a strong year for both earnings growth and completing its global footprint across ANZ, Asia, North America and Europe. Increased market share, new acquisitions, improving corporate travel demand, higher airfares and a falling AUD should underpin strong double digit earnings growth for many years to come. We retain an Add recommendation and upgrade our price target. View further analysis (Morgans clients only).
A.P. Eagers (APE) - Getting back in the driver's seat
While well guided, APE's 1H15 result exhibited exceptional growth on the pcp (NPBT +30%). Despite obvious tailwinds at play in the period which will likely ease somewhat, management is confident of a similarly strong result in the 2H. Further acquisitions look likely, but more importantly, APE is controlling a large portion of its growth organically. We get back in the game and upgrade to Add. View further analysis (Morgans clients only).
NextDC (NXT) - 9.8 out of 10
NXT reported an impressive FY15 result which was at the top end of guidance and paves the path for a three-fold increase in EBITDA profit in FY16. NXT sold 9.8MW of power in FY15 which was more than double guidance and also sets the company up well for FY17. The Return on Invested Capital for NXT’s first site, B1, is bordering on 20% and validates, in our view, the investment case for further facilities soon. View further analysis (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.