Daily FNArena News - Australia

Accounting software business Xero has rallied sharply in the year to date and most brokers believe the share price now exceeds valuation by a large measure.

Growth drivers for Janus Henderson are tracking ahead of most expectations and brokers are more confident regarding the outlook.

EclipX fleet operations appear stable, despite competition, while impairments are benign and end-of-lease outperformed in FY17. All up, brokers are increasingly confident in the outlook.

Uncertainty regarding penalties for non-compliance at Commonwealth Bank is weighing on the share price, although brokers acknowledge a solid first quarter.

Explosives supplier Orica provided a subdued outlook and is not expected to show the benefits of a rebound in activity until FY19.

Westpac’s FY17 results disappointed brokers at the headline level, with weak trading profits, but its capital position is better than expected.

Telstra is planning to extend its network and devices business via services delivery and apps to create more value. The extent to which this can plug the earnings hole created by the NBN is debated among brokers.

Boral has upgraded its FY18 Australian guidance and brokers suggest there could be further upside to come.

National Australia Bank will increase its investment in the business, targeting over $1bn in cost savings by FY20. Brokers welcome the strong FY17 result but remain more circumspect about the outlook.

Oil Search is heading north to Alaska to acquire a stake in a prospective oil field. What does this imply for a business that has been centred on PNG LNG?