Stock Analysis

Looking for an entry point with Incitec Pivot

Incitec Pivot (ASX:IPL) shares have struggled over the last 18 months given a mixed performance across its key businesses. This is because of a stretched balance sheet and production challenges at the Company’s ammonia nitrate (AN) plant in the US and a string of profit downgrades. After the Company announced its results for the six months to 31 March 2020 (1H20) and strengthened its balance sheet via an equity raising, when would it be a good time to invest? About …

Read MoreLooking for an entry point with Incitec Pivot

Can easing of COVID-19 restrictions benefit Tabcorp?

Tabcorp Holdings (ASX:TAH) has confronted a number of operational and structural challenges that have made us cautious about investing in the Company’s shares. We recently revisited the Company to gauge the extent to which these challenges may have moderated and whether TAH stands to benefit from any easing of COVID-19 restrictions. About Tabcorp Tabcorp Holdings is an integrated gambling and entertainment company. It has 3 core business divisions: Lotteries and Keno (~60% of earnings), Wagering and Media (~35% of earnings), …

Read MoreCan easing of COVID-19 restrictions benefit Tabcorp?

Upside for Reliance Worldwide, but headwinds persist

Reliance Worldwide Corporation (ASX:RWC) shares have been recently supported by two themes: i) Expectations that US sales continue to show resilience into 1H21 and ii) A shift in investor preference towards cyclical stocks. A market update issued early last month revealed that the impact of COVID-19 on RWC’s operations is varied by region. Accordingly, we recently undertook a review of the fundamentals to assess whether there is value at current levels. About Reliance Worldwide The Company is a global designer, …

Read MoreUpside for Reliance Worldwide, but headwinds persist

Orora set to trade higher, but can it last?

We recently reviewed Orora (ASX:ORA) after the Company outlined the intended use of proceeds from the sale of its Australasian Fibre business and provided a trading update detailing the impact from COVID-19. The asset sale has resulted in capital management initiatives and will strengthen the balance sheet. The shares now appear to be on the move, however, the key question for investors is whether the earnings outlook for the underlying business supports a re-rating in the shares from current levels. …

Read MoreOrora set to trade higher, but can it last?

Upside potential for Brambles, but not yet

We recently reviewed Brambles (ASX:BXB) after the Company provided an update for the 3rd quarter of financial year 2020 (3Q20). The trading update highlighted the overall defensiveness of BXB’s revenue base in light of COVID-19. The key issue underpinning the outlook for BXB is the extent to which operating leverage can return, given that the expected earnings growth rate for FY20 is lower than the rate of revenue growth. About Brambles Brambles is the largest provider of pallet services. Following …

Read MoreUpside potential for Brambles, but not yet