Sonic Healthcare – Buy

Posted on | by Leon Hinde

Sonic Healthcare is looking oversold and we believe buying support will build within the $31 – $34 price range.

SHL has a large percentage of its diagnostic equipment revenue based in US Dollars. As such, the company will benefit from the lower Aussie Dollar.

BlueScope Steel – Earnings Review

Posted on | by Leon Hinde

Housing demand, across renovation and new construction is driving strong demand for painted and coated steel products.

BSL upgraded 1H21 EBIT guidance by 25% to $475m.

We expect earnings to remain strong with top line revenue growth of 5 – 8% and underlying profit to increase by a similar number. This supports a 1% forward dividend yield.

We consider BSL full value and suggest investors wait for a pullback and the next Algo Engine buy signal.

Orica – FY20 Earnings

Posted on | by Leon Hinde

Orica is under Algo Engine buy conditions and is a current holding in our ASX model portfolios.

ORI reported FY20 results, with EBIT of $605m, (down 9% on the same time last year), and underlying NPAT of $300m.

To support an improving share price we continue to monitor the potential for faster-than-expected resolution of manufacturing of the Burrup Plant.

FY21 dividend yield is forecast at 2.8%.

Sonic Healthcare – Buy

Posted on | by Leon Hinde

Sonic Healthcare is looking oversold and we believe buying support will build within the $31 – $34 price range.

SHL has a large percentage of its diagnostic equipment revenue based in US Dollars. As such, the company will benefit from the lower Aussie Dollar.