Story Only Gets Better For The MAC

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By Rudi Filapek-Vandyck

It turns out we have been a little bit too quick in finishing our story on The MAC Services Group ((MSL)) earlier today by stating JP Morgan was the only major equities expert who had commenced covering the company (see “JP Morgan Discovers The MAC”, published earlier today).

GSJB Were covers The MAC as well and the broker is equally positive about the stock’s prospects. GSJBW analysts have taken the opportunity to lift their earnings forecasts following news The MAC had successfully tendered for the leasing rights to a 20 hectare property in Karratha in Western Australia’s Pilbara region.

As a result of the increase in future rooms the company’s earnings and valuation went up and this resulted in the broker’s price target increasing by 5% to $3.93, suggesting a total return of close to 25% from yesterday’s closing share price (estimated dividend yield is some 2% but expected to grow over the next few years). Weres has set a Buy rating.

Aspect Huntley too covers the stock but has yet to update its views and calculations following the company’s entrance into Western Australia. So far, Aspect Huntley believed investors should Accumulate the stock below $3 a piece.

At the current share price of around $3.20 however, the equity researcher would advise investors “Hold”.

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