SUPPLY NETWORK LIMITED (SNL)
Share Price Analysis and Chart

28/08/2024

1

Buy

$30.50

3.15%

Ord Minnett raises its target for Supply Network to $30.50 from $26.60 following FY24 results showing record sales and profitability, and a bright FY25 outlook. Buy.

Management is anticipating above average revenue growth for at least the next year.

Strong industry demand from commercial vehicle customers is being driven by an ageing vehicle fleet, increasing freight task and the increasing complexity of vehicles, explains the broker.

The board declared a fully franked final dividend of 33 cents, a 17.9% increase on FY23.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 64.50 cents and EPS of 91.80 cents.
Ord Minnett forecasts a full year FY26 dividend of 75.00 cents and EPS of 106.00 cents.

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04/09/2024

3

Hold

-

-

Taylor Collison highlights the market cap of Supply Network has risen 99% in the last year with the broker upgrading EPS for FY25 by 7.5% and believes the tightly held share register is not too concerned by slight misses on earnings with a positive long-term outlook.

In 2H24 the company improved margins by 186 basis points than 1H24, although the margins typically skew to the second half, the broker notes this was an "outlier" of a year.

The company continues to expand its network, typically around one new branch every 12-18 months with Wangara due to start on March 1 2025.

Hold rating unchanged, despite the lofty valuation the broker states it is an "exceptional business run by A-grade management".

FORECAST
Taylor Collison forecasts a full year FY25 dividend of 64.00 cents and EPS of 90.10 cents.
Taylor Collison forecasts a full year FY26 dividend of 72.00 cents and EPS of 102.00 cents.

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