Daily FNArena News - Australia

Brokers welcome the news that Automotive Holdings has finally offloaded its refrigerated logistics business, a division that has been a drag on the company for several years.

Webjet’s guidance to operating earnings of $80m is below most forecasts and includes a number of one-off costs. Brokers vary on their preparedness to look past these items.

Despite FY17 being beset by costs, Technology One expects profit growth to regain momentum in FY18.

The a2 Milk Co has impressed brokers with its substantial revenue and profit growth at the start of FY18, although projections are considered largely factored in to the stock.

Brokers see Carsales’ full takeover of Korea’s leading equivalent as providing a new lease of life for a maturing business.

Laboratory services business ALS provided a mixed outlook for FY18 after its first half result and has announced a buyback following divestment of its oil & gas segment.

Newly listed Domain offers exposure to favourable trends in the Australian real estate listings market but brokers believe the stock is fully valued at the present time.

Accounting solutions business MYOB has reaffirmed guidance for revenue growth of 13-15% and announced the acquisition of the Reckon Australasian accountant group.

The market is abuzz with speculation regarding a bid for Santos but brokers suggest progress on any offer would be difficult and success highly uncertain.

Brokers are unsurprised by a guidance upgrade from fruit&veg producer Costa Group and believe the market is already way ahead.