Singapore Stock Market News

Ausgroup - Too Much Speculation

StockFanatic
Publish date: Fri, 09 May 2014, 12:26 AM
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AusGroup's core PATMI slid back into the red in 3Q14, even as revenues rose 7% q-o-q. While the healthier AUD395m orderbook is a positive, we remain concerned on execution. The stock has nearly trebled since its Dec 2013 low, well ahead of any news flow, and has priced in much more than a simple earnings recovery.

We downgrade to SELL with a SGD0.36 TP (from SGD0.25) based on 1x FY15F P/BV.
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