Investment Research Updates

Company Updates: LNK, APE, RMD, PME, AGL, AIZ

20/06/2022

Link Administration Holdings Limited (LNK) reaffirmed its FY22 guidance last Friday following the ACCC raising competition concerns over Dye & Durham’s planned acquisition of the company. LNK affirmed that it expects low single digit revenue growth and operating EBIT growth of at least 5% vs FY21. The regulator is set make its final decision on 8 September. LNK shares rose 1.49% to close at $3.40.

17/06/2022

Eagers Automotive Limited (APE) announced yesterday it plans to conduct an on-market buy-back of up to 25.6 million shares, or 10% of issued capital. Management noted the buy-back comes after recent positive market guidance against a backdrop of extreme stock market volatility. The buy-back is set to commence on 30 June and is planned to occur progressively across 12 months from commencement. APE shares rose 5.44% to close at $9.30.

Link Administration Holdings Limited (LNK) revealed yesterday that the ACCC had outlined significant preliminary competition concerns regarding Dye & Durham’s planned acquisition of the company. Due to LNK having a 42% stake in property settlement platform PEXA, the regulator highlighted the potential for vertical integration which could hinder existing competition or raise barriers to entry. The ACCC is set to make its final decision on 8 September. LNK shares fell 10.43% to close at $3.35.

16/06/2022

ResMed Inc (RMD) revealed yesterday it will be acquiring Medifox Dan, a German leader in out-of-hospital software solutions for approximately US$1 billion. The deal aims to build on ResMed’s current SaaS business portfolio based in the US to establish the company as a global leader in software solutions. The transaction, which will be funded by existing credit facilities values the Medifox Dan business at ~28.5 times its CY21 pro forma adjusted EBITDA. RMD shares fell 2.49% to close at $29.01.

15/06/2022

Pro Medicus Limited (PME) revealed yesterday its Visage Imaging business signed two contract renewals, with a combined value of $54 million. Sutter Health, based in California, signed for an additional seven years and Wellspan Health signed for another five years. Both contract renewals were negotiated at a higher transaction cost than their original value. PME shares fell 5.49% to close at $39.11.

14/06/2022

AGL Energy Limited (AGL) announced on Friday that is has now completed a technical assessment of the scope and duration of works required to return Loy Yang A Unit 2 to service. Based on this review, AGL expects this outage to extend until the second half of September, due to global supply chain issues and the availability of specialised materials. Loy Yang A Unit 2 initially went offline on 15 April 2022 following an electrical fault. AGL shares fell 0.2% to close at $8.74.

Air New Zealand (AIZ) updated guidance on Friday for FY22, with expectations that the result would be a loss before significant items and taxation of less than $750 million, down from $800 million. The airline continues to see strong passenger booking activity on short haul and international services following the opening of the New Zealand border. Domestic demand has also improved in recent weeks with business-related demand returning to approximately 90% of pre-Covid levels. AIZ management noted that it is mindful of the current uncertain macroeconomic environment, with potential disruptions caused by any emergence of covid variants, continued travel restrictions and ongoing conflict in Ukraine contributing to high jet fuel prices. AIZ shares fell 5.4% to close at $0.53.

 

Issued by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Warning: Past performance is not a reliable indicator of future performance. Any advice is General Advice without considering the objectives, financial situation and needs of any person. Before making a decision read the PDS and consider your financial circumstances or seek personal advice. Disclaimer: Lonsec gives no warranty of accuracy or completeness of information in this document, which is compiled from information from public and third-party sources. Opinions are reasonably held by Lonsec at compilation. Lonsec assumes no obligation to update this document after publication. Except for liability which can’t be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error, inaccuracy, misstatement or omission, or any loss suffered through relying on the document or any information. ©2022 Lonsec. All rights reserved. This report may also contain third party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material. Any unauthorised reproduction of this information is prohibited.

Register for our FREE newsletter to receive investment insights, education, and SMSF trustee updates