In this week's Weekly Insights (this is Part Two): –Out With The Garbage –Change: Rudi On TV -Zimbabwe on Top…
Morgan Stanley rates BLD as Overweight
Boral will sell its US block business for US$156m. Morgan Stanley believes the sale comprises a healthy multiple relative to valuation. The transaction is only small but should help to de-leverage the balance sheet.
Separately, the company has also indicated an expanded plasterboard joint venture or 100% ownership is being considered.
Overweight rating. Target is $8.00 and Industry view is Cautious.
Macquarie rates CGF as Outperform
Challenger reported net book growth of 3.1% in the Sep Q, underpinned by annuity sales. An announced annuity partnership with Netwealth ((NWL)) should support growth, the broker notes.
Guidance for 8-12% FY19 profit growth has been maintained and the broker retains Outperform. Target rises to $12.50 from $12.40.
UBS rates OZL as Buy
September quarter production was slightly ahead of expectations. Management now expects 2018 to be at the upper end of the 100-110,000t guidance. Carrapateena is on schedule for first production in the fourth quarter of 2019.
UBS continues to suggest the market is too cautious regarding the copper price and development risks and believes there are many upcoming positive catalysts. Buy rating maintained. Target is reduced to $10.50 from $11.00.
FNArena’s Treasure Chest reports on money making ideas from stockbrokers and other experts. A broker upgrade highlights a growing belief investor sentiment is holding back Link Administration when upside potential should suggest otherwise.