Forum Topics News Summary DJ Australian Equities Roundup -- Market Talk 18 Mar 2025 14:57:06
Jimmy
Added a month ago

0340 GMT - ARB Corp.'s underperformance relative to global auto-parts peers since the U.S. election is hard to explain, Jefferies analysts say. They concede that there is great uncertainty around the final form of U.S. tariffs, but can't immediately see why an Australian company with manufacturing in Malaysia and Australia has been turned on so forcefully by investors. They tell clients in a note that it's understandable that U.S. manufacturers with production in Mexico have underperformed, but less so in the case of ARB, which is only exposed to aluminum and steel tariffs. ARB still looks expensive to Jefferies' analysts, even though its U.S. distribution strategy is taking real shape. Jefferies has a hold rating and A$36.00 target price on the stock, which is up 0.1% at A$34.00. (stuart.condie@wsj.com)

0011 GMT - Takeover proposals aimed at Smartpay turn Bell Potter analyst Hayden Nicholson bullish on the stock, which he says is worth more than is on the table. Raising his recommendation to buy from hold, Nicholson tells clients in a note that he expects further strategic interest in the payments-terminal provider. He sees Smartpay's successful pilot of a new terminal and acquiring solution as a major attraction. Nicholson calculates that an earlier agreement by Smartpay to sell its New Zealand assets implies that Tyro Payments' A$1.00-a-share offer is worth three times the group's fiscal 2025 revenue. This looks low, he says. Bell Potter lifts its target price 96% to A$1.33. Shares are up 6.4% at A$0.83. (stuart.condie@wsj.com)

0001 GMT - Premier Investments keeps its bull at Bell Potter following the divestment of its non-core apparel brands to department-store operator Myer. Analyst Chami Ratnapala maintains a buy rating on the stock ahead of Premier's first-half result announcement, telling clients she is keen for trading updates from the Australian company's prominent remaining brands. She thinks that Premier will flag coming improvements in performance at stationery provider Smiggle, as well as continued strength at its Peter Alexander sleepwear business. Both businesses are worthy of a global rollout, she adds in a note. Bell Potter cuts its target price by 12% to A$30.00. Shares are up 1.45% at A$21.05. (stuart.condie@wsj.com)

2359 GMT - The wisdom of National Australia Bank's latest executive appointment will only become clear after some time, according to Morgan Stanley analysts. They tell clients in a note that Andrew Auerbach's lack of local experience and profile keep them from forming an immediate view on NAB's new head of business and private banking. In the meantime, they see the simultaneous exit of Auerbach's divisional predecessor and CFO Nathan Goonan as a near-term negative for the lender. Goonan's experience and track record at NAB make his appointment at rival Westpac a positive development for that company, they add. (stuart.condie@wsj.com)

0504 GMT - The highly unusual departure of National Australia Bank's chief financial officer prompts Jarden analysts to flip bearish on the lender. Cutting their recommendation on the stock to underweight from overweight, they are worried that Nathan Goonan's resignation for the same role at Westpac could raise uncertainty and risks at NAB. They add in a note that they aren't surprised by separate changes in leadership at NAB's business and private wealth unit but wonder why there is an interim appointment given there is an apparent overlap between the incumbent's departure and the newcomer's arrival. They speculate that there could be deeper cultural or operational issues at NAB's business bank. Jarden cuts its target price by 21% to A$30.00. Shares are down 0.5% at A$33.13. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

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