A2 Milk’s share price increased by 1.63% or 17c to $10.57 on turnover worth $4.8m despite a downgrade from Jarden analysts from neutral to underweight.
The analysts argued the company’s future growth prospects were now priced in at the current share price, making it an overpriced investment.
“On P/E [price to earnings] multiple, current pricing also looks stretched, factoring in strong near-term growth as permanent. Key risks: China macro issues, competition and execution of own manufacture transition,” the analysts said.
Vital Healthcare’s share price fell 3.14% or 7c to $2.16 after it gave an update on some of its recent transactions.
“A few of them are going through at book value, which is good, but one of the Australian buildings sold for about 10-15% below book value, so that’s just weighing on that stock a little bit today,” Sullivan said.
“They’re primarily Australian-based healthcare, so we’re closely watching what things are doing over there as far as the realisation programme that they have to reduce debt.”
Apple grower Scales upgraded its earnings guidance for 2025, with its underlying net profit expected to be between $54m and $59m, up from a previous guidance range of $51m-$56m.
Scales’ share price lifted 4.21% or 24c to $5.94.
“They don’t seem to be able to do anything wrong at the moment. Strong operational performance, resilience among geopolitical risks, there’s plenty of confidence in their outlook.”
Meanwhile, Restaurant Brands’ largest shareholder Finaccess officially launched its takeover bid for the business at $5.05 per share, a 70.6% premium on the share price before the notice of intent.
Sullivan said it was “pretty much” a done deal thanks to Finaccess’ majority share and the backing of the Accident Compensation Corporation (ACC).
Restaurant Brands’ share price lifted 1.62% or 8c to $5.03 after 495,481 shares changed hands on turnover worth $2.49m.
International news
European and US stock markets fell before recovering somewhat as they weighed trade tensions between Beijing and Washington and digested fresh Federal Reserve commentary.
Wall Street indices opened firmly in the red amid the latest back and forth involving the United States and China on trade. But US stocks recovered somewhat after midday remarks from Fed chairman Jerome Powell.
Powell’s observation that US payroll gains have “slowed sharply” strengthened confidence the US central bank would cut interest rates this month.
“In this less dynamic and somewhat softer labour market, the downside risks to employment appear to have risen,” Powell said.
While two of the three major US indices still finished in the red, the broad-based S&P 500 shed 0.2% at 6644.31, about 90 points above its session low.
The Nasdaq closed down 0.8% at 22,521.7, while the Dow Jones closed up 0.4% at 46,270.46.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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