Hot stock picks from the Australian market
Share to buy – Computershare (CPU)
Computershare maintained FY16 guidance and provided greater clarity around cost savings and gearing targets at its recent AGM. We see the company responding to market feedback and this suggests a more communicative stance in the months ahead. With a rise in the Fed funds rate around the corner, which would be a positive for CPU, we see further upside on offer with $12.50 a potential target.
Share to Buy – Qantas (QAN)
Qantas reports tomorrow and is on track to chalk up their largest annual profit since 2008. We are expecting a strong result which could push the share price significantly higher. Earlier in the week, Sydney Airport agreed to buy terminal 3 at Sydney Airport off QAN, for $535 million. In return for Sydney Airport buying back the terminal lease, which had been due to expire in 2019, Qantas has received assurances it will have priority access to 12 of 17 gates and 75 per cent of the check-in area and the majority of the baggage claim area in the terminal between 2019 and 2025. That alleviates QANs concerns that Sydney Airport could turn the terminal, used only by Qantas and QantasLink, into a large multi-user facility post-2019. Technically, the QAN chart is showing us everything we would hope to see and if we get a strong set of numbers tomorrow, the uptrend should continue and even accelerate.
Share to buy – Premier Investments
On March 5th our Head of Research Chris Conway appeared on Sky Business and placed a BUY rating on Premier Investments (PMV), citing the company’s optimisation strategy and growth in its Peter Alexander and Smiggle brands as potential highlights ahead of the company reporting. On March 23rd Premier reported, delivering a 9% increase in half-year profit in defiance of harder times being faced its major department store competitorsPremier lifted its net profit to $56.3 million after stronger sales growth from across its key brands such as Smiggle and Peter Alexander. On the day of reporting, Premier closed up an impressive 11.1% [video width="640" height="360" mp4="http://www.australianstockreport.com.au/21jan_share-tips/wp-content/uploads/Premier-Investments.mp4"][/video]
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