Flexigroup King As GSJBW Comes To The Party

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By Rudi Filapek-Vandyck

Shares of lease and rental finance provider for computer equipment and office technology Flexigroup (FXL) have surged more than 6% to $3.00 today following the decision by GSJBW to upgrade the stock to Outperform/LT Buy and add it to the broker’s so-called Conviction List. This list is a selection of Buy recommended stocks that carry the highest conviction that buying them should pay off very well in the year ahead.

GSJBW’s change in view is partly related to the pending ASX-listing of Thinksmart in August which is believed to provide the stock with some “valuation support”. In addition, the broker foresees earnings upgrades and a re-rating for Flexigroup following what should be a bumper FY07 result in August.

We also noted UBS updated the market about its Model Portfolio this morning. UBS has maintained its overweight stance regarding resources, and preferable through large-cap diversifieds. In addition the broker has also remained overweight in “mining capex plays” as well as in diversified financials. Banks have remained overweight. Listed property trusts remain underweight.

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