Daily FNArena News - Small Caps

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.

Radio advertising markets are now pivotal for HT&E and the environment remains tough in the second half of 2019, although the third quarter could be a nadir.

It’s a tough year ahead for Nick Scali as conditions are subdued and the furniture retailing business is dependent on a turnaround in housing activity.

Significantly higher earnings are expected from Pinnacle Investment over the longer term, although the business is likely to wear some short-term volatility.

Smart phone technology company, Life 360, has performed strongly in the first half and brokers are impressed with the outlook.

High lithium inventory, trade and political tensions have impacted Orocobre in the June quarter. Nevertheless, brokers believe the business is well-positioned for when the market turns around.

FY21 will be a watershed year for Senex Energy and several brokers expect the stock to re-rate as gas production increases and LNG spot prices recover.