Aristocrat Leisure – 1H22 Earnings

Posted on | by Leon Hinde

ASX:ALL} is under Algo Engine buy conditions.

ALL reported normalised 1H22 sales +23% to $2.74bn and EBITDA up +31% $970mn. The share price will remain well supported by the announced on market A$500 mn share buyback program.

FY23 revenue growth of 7% and EBITDA 10%+, places the stock on 17x forward earnings and a 2.2% yield

Bluescope Steel – Earnings Outlook

Posted on | by Leon Hinde

ASX:BL is under Algo Engine buy conditions. BSL provided a trading update and now expects EBIT for 2H FY22 to be $1.375-1.475bn.

The more robust outlook is driven by improved earnings expectations for North America with better-than-expected realised steel prices and spreads in the United States.

Based on FY23 earnings we have Bluescope on a 2.3% forward dividend yield.

BHP – Copper & Nickel

Posted on | by Leon Hinde

Future facing commodities, such as copper and nickel are well supported in BHP’s portfolio. BHP has the world’s largest copper resource and the second-largest nickel sulphide resource base globally.

Lithium Miners – Algo Signal Review

Posted on | by Leon Hinde

Australia-based producer Pilbara Minerals is our preferred exposure for lithium along with Mineral Resources is a preferred stock for broader resources exposure.

Our resource basket now consists of BSL, IGO, ILU, IPL, LYC, MIN, NCM, NST, ORG, OZL, PLS, S32 & WPL.

James Hardie FY23 Outlook

Posted on | by Leon Hinde

JHX reported FY22, with NPAT increasing by 36% to US$620m. While volumes generally slowed in recent months, FY23 NPAT guidance is maintained at US$750-800m.

Based FY23 earnings we have JHX trading on a forward yield of 3.8%.