Bendigo (BEN.ASX) 2H16 result confirmed that underlying operating conditions remain challenging. Revenue grew by 2% compared to the 1H16 and the outlook remains challenging with subdued volume loan growth and ongoing pressure on margins from competition and lower interest rates.
FY17 outlook is for cash earnings of around $450m on EPS of $0.96 and dividend payout of $0.67 placing the stock on a forward yield of almost 6.8%.
No signal present.
Short BEN.ASX (update)
Following the short recommendation on the 1st of June and our $9.10 target, it’s worth highlighting that Bendigo Bank hit our target (traded down to $8.91) two weeks later and a profit of over 10% in less than 10 trading days. Bendigo has now bounced and traded back up towards a sell price that puts the short trade back on our radar again, however, until the broader market indices rollover, we’re not focused on new short positions just yet.
Stay tuned.
BEN.ASX (time to take profit)
We recommended shorting BEN.ASX on the 1st June. The stock has now sold off 10% in 3 trading days, “time to take profit”.
Short BEN.ASX
Stop Loss $10.35, otherwise hold the short until $9.10 profit range June/July exit.
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