Newcrest – Algo Buy
NCM is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see price support developing near the $25 – $26 level.
CIMIC – Below Expectations
Cimic Group is under Algo Engine sell conditions. Despite this, we’ve held a view that the company has cleaned up the balance sheet and offers exposure to an increasing infrastructure build thematic.
The FY20 earnings result and FY21 guidance was below market consensus and we’ve seen the stock sell off as a consequence.
FY21 NPAT guidance of $400-430m down from FY20 NPAT of $600m.
The silver lining is the business does appear to be de-risking and likely to manage its way through the transition to new, lower risk contract wins.
The forward yield is now 4%, but the free cash flow generation will need to be watched closely.
Telstra – 1H21 Reviewed
Telstra has reported underlying 1H21 EBITDA $3.8bn.
An interim dividend of 8¢ps was declared, comprising a $0.05 ordinary and $0.03 special.
FY21 guidance now stands at $6.6bn to $6.9bn and FY22 & FY23 targets increased to $7.5-8.5bn.
Telstra will provide an update on towers later this quarter with binding offers expected by FY22. Some analysts have a standalone valuation on towers of $2.50+.
Downer EDI – Algo Buy
Downer EDI is now under Algo Engine buy conditions, following the entry signal at $5.15. The stock is now included in our ASX 100 model portfolio.
The company is making progress on its urban growth strategy and the divestments within the mining services sector are helping to sure up the balance sheet and de-risk the business outlook.
We see scope for double digit EPS growth into FY22 & FY23.
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Newcrest – Algo Buy
NCM is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see price support developing near the $25 – $26 level.
Northern Star – Algo Buy
Northern Star Resources is under Algo Engine buy conditions and should be well supported by the cost-out story following the merger with Saracen.
NST announced 1HFY21 earnings with NPAT ahead of analysts forecasts.
$0.095 interim dividend.
CBA – Earnings
Commonwealth Bank of posted a 21% fall in half-year net profit to $4.88bn in the six months through December from $6.16bn a year earlier. Cash earnings fell 11% to $3.89bn.
An interim dividend of A$1.50 a share, down 25% on year.
We remain cautious on the local banks following the strong run-up in share values.
Computershare – 1H21
Computershare is under Algo Engine buy conditions and we’re somewhat pleased to see the 1H21 earnings down less than originally forecast.
A fall of 8% on the same time last year is still hardly inspiring and we, therefore, remain concerned about the lack of growth drivers for the business.
CPU remains under review.
Downer EDI – Algo Buy
Downer EDI is now under Algo Engine buy conditions, following the entry signal at $5.15. The stock is now included in our ASX 100 model portfolio.
The company is making progress on its urban growth strategy and the divestments within the mining services sector are helping to sure up the balance sheet and de-risk the business outlook.
We see scope for double digit EPS growth into FY22 & FY23.
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Macquarie – 3Q21 Update
Macquarie Group are now guiding for FY21 to be slightly down on FY20. We take this to mean down 3 – 8% and note this is an improvement on the current consensus for FY21 NPAT to be down 23%.
MQG’s surplus capital position has increased to $8.1bn from 6.2bn.
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