Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Citi insights: Bluescope Steel, Mirvac, Xero performance analysis

EditorOliver Gray
Published 28/05/2024, 04:06 pm
© Reuters

Investing.com - Citi Group's recent analyst note provided a detailed look into various sectors and companies on the Australian stock exchange, offering valuable insights into their performance and potential future trajectory.

Bluescope Steel Ltd (ASX:BSL), despite facing short-term headwinds, is expected to maintain a neutral stance due to lower steel prices and potential infrastructural spending in the US. The company's target price has been reduced slightly to $24.00.

Fletcher Building Ltd (ASX:FBU) has attracted attention due to recent press reports suggesting private equity interest. However, despite seeming undervalued compared to historical and earnings data, a closer examination reveals the stock trading at a premium to reported and adjusted NTA.

⚠️SPECIAL PROMOTION! Enjoy InvestingPro tools and strategies for A$13.9/month thanks to a limited-time discount on the 1-year Pro subscription! CLICK HERE to take advantage before it's too late, and know which stocks to buy and which to avoid no matter the market conditions!⚠️

Imdex Ltd (ASX:IMD) saw a surge in junior financings in April, surpassing the US$1bn mark. However, Citi Group analysts believe an uplift in exploration from juniors could still be more than 12 months away due to several factors including high interest rates, regulatory headwinds, and drill rig availability.

Mirvac Group (ASX:MGR) is predicted to face a potential third consecutive year of earnings decline in FY25, driven by various factors such as lower apartment completions and commercial development profits. However, due to its exposure to the residential market, the stock maintains a neutral rating.

Nufarm Ltd (ASX:NUF) is grappling with uncertainty around pricing recovery. Overcapacity in China and industry-wide destocking are among the challenges that could delay a significant price uptick. The company has been downgraded to neutral, with a target price trimmed to A$4.80 per share.

Xero Ltd (ASX:XRO) experienced strong exit growth rate post FY24 results, despite concerns about slowing subscription growth. The company is expected to accelerate R&D spending in FY25, driven by subscription and ARPU growth over the medium term. The company maintains a buy rating, with a new target price of $158.2.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.