Credit Suisse describes G.U.D. Holdings’ acquisition of AutoPacific Group for -$744.6m as transformational on both a financial and strategic level. The broker lifts its FY22-24 EPS estimates by 6.4-12.9% and raises its target price to $14.30 from $13.90.
The analyst cautions the key risk to the stock in the near and medium term is the integration of the acquisition and the sustainability
of the earnings base of the assets acquired.
Sector: Consumer Durables & Apparel.
Target price is $14.30.Current Price is $10.78. Difference: $3.52 – (brackets indicate current price is over target). If GUD meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
QAN – QANTAS AIRWAYS LIMITED Credit Suisse rates the stock as Underperform –
Credit Suisse thinks reopening may be delayed due to the omicron variant and factors-in a three to four month delay for Qantas Airways’ metrics. The broker is cautious on taking a more positive stance and retains its Underperform rating.
The target price of $4.10 is unchanged, despite the analyst increasing the estimated loss for FY22 to -$1.6bn from -$1.2bn.
Sector: Transportation.
Target price is $4.10.Current Price is $4.86. Difference: ($0.76) – (brackets indicate current price is over target). If QAN meets the Credit Suisse target it will return approximately -19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
