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.
Related News
Daily ShareChat: Nuplex Industries Nuplex posts record jump in profit as China buys high-margin chemicals Nuplex names Boral executive Severin as CEO, replacing long-serving Hirst Nuplex shares soar on record first-half profit, reinstated dividends Daily ShareChat: Nuplex Industries Nuplex expects 'strong first half result', boosts guidance, rejigs management Nuplex, raising profit forecast, ponders move offshore, NZ asset review Nuplex reports strong earnings growth in Asia Nuplex shares jump on positive earnings and special dividend Daily ShareChat: Nuplex Industries
NZX Annoucements for NPX
|
|
Nuplex Industries Limited Ordinary Shares
Current quote:
NPX $3.33 -2
Quotes delayed 20 minutes
Price when article published: $3.27
Sharemarket News By Email
Previous News
Stock Quote
At a Glance
| NZX 50 Index |
3226.19 |
 |
13.00 |
| S&P/ASX 200 |
4820.00 |
 |
0.10 |
| Dow Jones Industrials |
10564.40 |
 |
11.90 |
Comment & Analysis
|
“
Fund managers bleary from a night celebrating the success of their own kind awoke Thursday morning to news that an outsider, and upstart competitor, had slipped up.
After weeks of controversy the resignation of Peter Huljich from the investment/KiwiSaver company he started was not really surprising.
Few rivals will miss him but the mood amongst [...]
”
David Chaplin More »
|
|
|
|


NZX 15 Index
NZX Announcements
|