Endeavour (ASX:EDV)
EDV's 1H23 result was comfortably ahead of expectations with Retail margin performance the key standout.
In our view, the result highlighted management's ability to control costs despite inflationary pressures. While the regulatory environment remains uncertain, on balance, we think the risks lie to the upside with the underlying business performing well. We upgrade our rating to Add (from Hold).
Aurizon (ASX:AZJ)
1H23 earnings (EBITDA -7% on pcp, EPS -34%), cashflow, and DPS (-33% on pcp) were below expectations, and FY23 EBITDA guidance was downgraded 4%.
Implies both attractive valuation metrics and a share price rebound as the market digests the one-offs affecting FY23. We think there is both potential price upside and reasonable yield at the current share price (more attractive looking into FY25F). Upgrade to Add (from Hold).
JB Hi-Fi (ASX:JBH)
The 1H23 result was in line with JB Hi-Fi’s January preannouncement. We have made no major changes to our estimates, increasing our FY23 EPS forecast by 1.6% and reducing our FY24F EPS forecast by 2.5%.
We retain an Add rating.
Beach Energy (ASX:BPT)
BPT delivered a soft 1H23 result, down 10% on pcp, driven by cost increases and production declines. Guidance for FY23 has been downgraded with production reduced by 7% and field operating costs up by 12%.
FY24 production guidance to be provided at the full year result but management clarified that legacy aspirational targets are no longer relevant.
We retain our Add rating.
Morgans clients receive access to detailed market analysis and insights, provided by our award-winning research team. Begin your journey with Morgans today to view the exclusive coverage.
