0012 GMT - Any weakness in SGH shares is an opportunity to buy, according to Morgan Stanley analysts Joseph Michael and Julianna Sick, who view FY27 as "a transition year, not a thesis break." Shares in the ASX-listed industrial conglomerate fell by more than 10% Tuesday after below-consensus FY27 guidance. The MS analysts say an FX headwind masks stronger underlying growth and that their positive thesis is unchanged. "SGH remains a high-quality industrial compounder with privileged assets and direct exposure to Australia's structural capex cycle," they say. MS trims its target on the stock to 48.00 Australian dollars a share from A$49.00/share but keeps an overweight rating. Shares are up 1.1% at A$42.03.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments