Daily Share Chat: Nuplex
By Jenny Ruth
Resins company Nuplex's third profit upgrade in just over two months reflects management's increasing confidence in its operating performance, despite the difficulty in forecasting in the current environment, says Craigs Investment Partners analyst Dennis Lee.
Management said trading conditions were solid in November and December and raw materials costs have also been stable.
"Management said while it is difficult to gauge demand conditions in the second half at this stage, it is confident that current trends are unlikely to change materially in the near term to distort full-year earnings," Lee says.
Nuplex now expects earnings before interest, tax, depreciation and amortisation (EBITDA) between $120 million and $135 million for the year ending June, up from its previous guidance of between $110 million and $120 million, and confirmed it will resume paying dividends.
"We retain our positive view. We believe Nuplex's earnings are highly leveraged to the ongoing rebound in global economic activity," Lee says. Recent leading indicators support a continued global economic recovery, he says.
Lee has raised his target price 11% from $3.28 to $3.66 and has raised his forecast EBITDAfor 2010 by 9% to $125.8 million. He has raised his 2011 and 2012 forecasts by 4% each.
Recommendation: buy. Daily ShareChat articles report how the main experts in the market might view a certain share and we provide this commentary as a useful resource for investors. Content on this site does not in any way constitute a recommendation to buy, hold or sell any particular share. Investors should always seek professional advice before making any investment decisions.
Comments from our readers
No comments yet Add your comment:
Related News
Nuplex enters Russian joint venture Nuplex shares plunge 7.8% after profit warning Nuplex gains regulatory approval for Viverso purchase Nuplex may replace some bank debt with first issue of bonds in US private placement market Nuplex to buy Bayer MaterialScience's Viverso, forecasts 10% earnings growth Nuplex bows to shareholder pressure, withdraws director fee hike proposal Nuplex directors ask for shareholders for 33% pay rise Nuplex pays A$23.5 mln for Acquo Masterbatch Nuplex full year profit up 7.5 pct Daily ShareChat: Nuplex
NZX Annoucements for NPX
|
|
Nuplex Industries Limited Ordinary Shares
Current quote:
NPX $2.55 +5
Quotes delayed 20 minutes
Price when article published: $3.27
Previous News
FREE Email News
Stock Quote
Today's Market Numbers
| NZX 50 Index |
3315.14 |
 |
2.90 |
| S&P/ASX 200 |
4274.20 |
 |
21.80 |
| Dow Jones Industrials |
12845.10 |
 |
17.10 |
Most Commented On
|
|


NZX 15 Index
|