Daily FNArena News - Small Caps

Baby Bunting has confidently reiterated earnings assumptions for FY20, with an expanded gross margin being the main surprise in a detailed trading update at the AGM.

EclipX Group is reverting to focus on its core fleet and novated leasing businesses, and interest in the company is only expected to grow.

Brokers are excited as more than 70% of People Infrastructure’s operating earnings are now derived from healthcare and IT, segments with the highest rates of expected employment growth over the next five years.

Freedom Foods offers strong prospects for growth from its dairy and nutritional products but are expectations too optimistic?

Costs are catching up with HUB24 as the business scales up to take advantage of the plethora of advisers switching to independent platforms.

Fashion retailer City Chic has successfully expanded its online presence in the US, providing confidence in the substantial potential offshore.

Audio technology provider Audinate has guided to similar revenue growth in FY20 and brokers do not believe the sell off in the shares was justified.

Footwear retailer and distributor Accent Group is trialling new store concepts while offering a superior digital presence. Growth initiatives in the near term are primarily in the domestic sphere.

Smartgroup Corp has proved resilient in the first half of 2019, recording growth in novated leasing and salary packaging despite a difficult macro environment.

Favourable industry restructuring has allowed Baby Bunting to become the dominant player in the baby goods segment and brokers expect strong earnings growth over the next several years.