Our 'Best Calls to Action' aim to navigate you through the current reporting season by showcasing stocks with strong buying potential. They also offer insights into stocks that might not be ideal for growth right now. These recommendations come from thorough analysis of market trends, financial health, and growth potential, ensuring you access high-value investment opportunities.
Happy to buy today
Regal Partners (ASX:RPL) - Earnings materialise following fund outperformance
RPL’s HY24 result beat both our expectations and those of consensus as management fee revenue and principal investing income continued to grow. The earnings trajectory for recurring management fees should continue to rise, as the business grows FUM to $16.5bn (HY24 Ave. FUM: $11.7bn), while further cost-outs (CY24: $3-4m) will likely increase underlying NPAT.
We maintain our ADD rating.
Dalrymple Bay Infra. (ASX:DBI) - EBITDA growth, interest cost distortions
1H24 EBITDA growth was predictable as expected, but FFO beat on lower net interest costs than expected. Positive surprises were the 8X expansion cash received and previous NECAP spend yet to be added to the asset base.
We maintain our ADD rating.
Tyro Payments (ASX:TYR) - Under-appreciated delivery
While it remains a more difficult top line environment for TYR, this result demonstrated improved profitability through the benefits of TYR’s pricing transformation program, and efficiency improvements. We increase our TYR FY25F/FY26F EPS by +15%-25% on improved EBITDA margin assumptions and lower D&A forecasts
We maintain our ADD rating.
Stanmore Resources (ASX:SMR) - Steel uncertainty builds the next opportunity
The 4.4 US cps dividend was the biggest surprise amongst SMR’s 1H24 result. Re-affirmed production and adjusted cost guidance was also a good look. At this point we think large sector M&A activity looks unlikely for SMR. Surprisingly weak steel markets do pose short-term risks to earnings/ valuation. But we maintain our positive medium-term structural view, and see interim weakness as an opportunity.
We maintain our ADD rating.
Tasmea (ASX:TEA) - Beating forecasts and delivering acquisitions
TEA has announced its third acquisition since its Apr-24 IPO. TEA will acquire Future Engineering Group for $84.5m, with the transaction expected to deliver $15.5m of EBIT and be c.21% EPS accretive. The company has achieved its prospectus forecasts, with EBIT exceeding forecasts by 1.5% and NPAT exceeding forecasts by 10.3%.
We maintain our ADD rating.
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