#FOTO:306864839:200#
Michael Gable, Fairmont Equities
BUY RECOMMENDATIONS
Lendlease (LLC)
#FOTO:306864842:300#
Chart: Share price over the year
Cash flow is up significantly compared to last year and the balance sheet is looking strong. The development pipeline is also at a record level for this property and infrastructure company. The stock has pushed above a one year downtrend and is now on track to resume the longer term uptrend. We expect levels as high as $16 to be reached in the next few months. The shares were trading at $13.44 on April 6.
Mantra Group (MTR)
#FOTO:306864843:300#
Chart: Share price over the year
We believe in the tourism theme and this accommodation services provider is well leveraged to benefit. The property portfolio continues to expand and the company upgraded earnings guidance during interim results in February. From a charting perspective, MTR has pushed beyond a shorter term downtrend line and is now well placed to resume a longer term uptrend.
HOLD RECOMMENDATIONS
Aveo Group (AOG)
#FOTO:306864844:600#
Chart: Share price over the year
We put a buy recommendation on this retirement village developer and operator a month ago, noting a push beyond key resistance of $3.20 was imminent. Now that AOG has broken $3.20, we move to a hold recommendation with a view to reassess up towards $3.80. The shares were trading at $3.29 on April 6.
Sigma Pharmaceuticals (SIP)
#FOTO:306864845:600#
Chart: Share price over the year
SIP has been successfully diversifying revenue. There’s also the prospect of a market re-rating if SIP can exceed guidance. The chart shows a possible short term pull back, but $1.10 is achievable. The shares were trading at $1.067 on April 6.
SELL RECOMMENDATIONS
Premier Investments (PMV)
#FOTO:306864846:600#
Chart: Share price over the year
PMV is a quality stock, but the owner of retail brands Just Jeans, Smiggle and others has become too expensive, in our view. We can also see sell signals on our weekly candlestick charts, suggesting that it’s safer to take profits now and look for buying opportunities during the next market sell off.
Wesfarmers (WES)
#FOTO:306864847:600#
Chart: Share price over the year
The share price continues to struggle and we expect lower levels during 2016. The stock has once again found price rejection near $44. We view the company’s share price as concerning and disappointing given key competitor Woolworths has been shooting itself in the foot. We expect levels as low as $36 this year. Wesfarmers was priced at $43.84 on February 22. The shares were trading at $40.46 on April 6.
#FOTO:306864840:200#
Simon Herrmann, wise-owl.com
BUY RECOMMENDATIONS
OZ Minerals (OZL)
#FOTO:306864848:600#
Chart: Share price over the year
Top Australian Brokers
- Pepperstone - multi-asset Australian broker - Read our review
- City Index - Aussie shares from $5 - Read our review
- eToro - market-leading social trading platform - Read our review
- IC Markets - experienced and highly regulated - Read our review
Offers profitable exposure to the gold and copper mining industry. We’re attracted to the company’s share buyback program, strong balance sheet and cash flow generation. The stock was recently trading about 25 per cent below its net tangible assets. The company is well positioned to benefit from any cyclical recovery in the gold price.
Steadfast Group (SDF)
#FOTO:306864849:600#
Chart: Share price over the year
The general insurer has generated double digit gross written premium growth in the past five years. SDF is on track to deliver its third consecutive year of earnings per share growth. Steadfast has consistently expanded its broker and agency network and recent acquisitions are starting to materialise.
HOLD RECOMMENDATIONS
Carsales.com (CAR)
#FOTO:306864850:600#
Chart: Share price over the year
Remains the market leader in the Australian online advertising sector for cars, boats and motorbikes. While domestic operations are robust, international expansion is the main catalyst for further growth. Generating free cash flow enables strategic acquisitions, investments or higher dividend payments in 2016.
Mint Payments (MNW)
#FOTO:306864851:600#
Chart: Share price over the year
This $50 million technology company focuses on payment solutions and is recording strong user growth across its platforms. Due to relatively low fixed costs, Mint has strong operational leverage to incremental contract wins and agreements. Partners in the US and Asia enable the company to leverage off third party distribution networks. We see further upside.
SELL RECOMMENDATIONS
1-Page (1PG)
#FOTO:306864852:600#
Chart: Share price over the year
The online recruitment company was one of the most popular stocks less than a year ago. On October 12, 2015, the stock was priced at $5. On April 6, 2016, the stock was trading at 98.5 cents. In our view, the stock rose on speculation and expectations rather than earnings. Following the substantial fall, it may take time for the stock to recalibrate.
Nine Entertainment Co. Holdings (NEC)
#FOTO:306864853:600#
Chart: Share price over the year
Trading conditions remain subdued and competition is fierce. The digital and online segment is growing, but not enough to offset declining television revenue, which fell 11 per cent in the third quarter.
#FOTO:306864841:200#
Matthew Litchfield, PhillipCapital
BUY RECOMMENDATIONS
IOOF Holdings (IFL)
#FOTO:306864854:600#
Chart: Share price over the year
This financial services company produced a solid first half fiscal 2016 result, with underlying net profit after tax increasing 18 per cent to $95.4 million. The recent acquisition of Shadforth Financial Group was a key driver for earnings growth. The company is conservatively funded with low debt. It benefits from secular growth in compulsory superannuation contributions and favorable demographic trends.
Ramsay Health Care (RHC)
#FOTO:306864855:600#
Chart: Share price over the year
Australia’s private hospital operator is benefiting from offshore expansion. The share price has fallen to attractive buying levels. China intends to support the private sector to ease the burden on the public health care system. Despite shelving a joint venture with Chengdu Jinxin Healthcare Investment Management, the potential exists for Ramsay to expand into China. The shares were trading at $61.80 on April 7.
HOLD RECOMMENDATIONS
Pro Medicus (PME)
#FOTO:306864856:600#
Chart: Share price over the year
Pro Medicus continues to sign contracts in the health sector for its leading medical imaging product called Visage 7. The latest contract with US based Mercy Health is worth a base value of $A21 million and is for 7 years. Given the track record with contact wins in the past, I expect this trend to continue.
Emerchants (EML)
#FOTO:306864857:600#
Chart: Share price over the year
After successfully deploying its payment cards in Australia’s gaming segment, Emerchants has leveraged the technology and signed an agreement with Hillside (bet365) in the United Kingdom. Further agreements signed in the UK should continue to boost the share price.
SELL RECOMMENDATIONS
Asciano (AIO)
#FOTO:306864858:600#
Chart: Share price over the year
Investors have done well from holding this company during a bidding war between Brookfield Infrastructure and Qube Holdings. Qube and Brookfield have since joined forces for port and rail group AIO. The Australian Competition and Consumer Commission is reviewing the new deal, which is expected to conclude on May 26.
Link Administration Holdings (LNK)
#FOTO:306864859:600#
Chart: Share price over the year
After a successful IPO in October 2015, the stock is starting to look expensive. Despite attractive characteristics, including its leverage to the growing Australian superannuation industry, we believe the stock is priced to perfection and is trading at a premium to our fair value. The shares were trading at $7.44 on April 7.
>> BACK TO THE NEWSLETTER: Click here to read other articles from this week’s newsletter
Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.