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
Reliance Worldwide (ASX:RWC) - Cost out mitigates weaker demand environment
RWC’s FY24 result overall was slightly better than expected. Key positives: FY24 underlying EBITDA margin (ex-Holman) rose 20bp to 22.3% vs management’s guidance for stable margins; Cost savings of US$23m were above management’s target of US$20m with further benefits expected in FY25.
We maintain our ADD rating.
Judo Capital Holdings (ASX:JDO) - Onwards and upwards
JDO met FY24 expectations and laid out the building blocks for 15% PBT growth into FY25. We think this outlook is an important stepping stone from the earnings nadir in 2H24 into the very strong growth we believe JDO can achieve in subsequent years (PBT +70% in FY26F and +42% inFY27F).
We maintain our ADD rating.
Trim/Funding Source
Ansell (ASX:ANN) - Moving in the right direction; but uncertainties remain
FY24 was mixed, with earnings tracking guidance but ahead of expectations, supported by one off items, but with revenue in line and OCF strong. Industrial sales and margins both improved on manufacturing efficiencies and carryover pricing, offsetting declining sales and contracting margins in Healthcare on inventory destocking and slowing of production to address inflated inventories.
We maintain our HOLD rating.
Baby Bunting Group (ASX:BBN) - Baby steps after a rocky year
BBN’s FY24 earnings were in line with recent guidance. Earnings came under real pressure in FY24. BBN expects to return to positive growth in sales and margins in FY25, but with an FY1 PE of 19.5x and with consensus NPAT sitting towards the top of the guidance range.
We adjust to a HOLD 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.
.jpg)
