Weekly 5 Winners| Acquisition & Rumors Become Tricky To Share Prices
As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 6,739.10 points, down 2.25% in the past 5 days.
During the last 5 trading days, $APM Human Services International Pty(APM.AU)$,$Star Entertainment(SGR.AU)$ , $Coronado Global(CRN.AU)$ , $AMP LIMITED(AMP.AU)$, and $COMPUTERSHARE LIMITED(CPU.AU)$ are the top 5 Weekly gainers, up 11.61%, 9.02%, 8.84%, 7.08%, and 5.65% respectively.
$Evolution Mining(EVN.AU)$ ,$Lynas Rare Earths(LYC.AU)$ , $Yancoal Australia(YAL.AU)$ , $Atlas Arteria(ALX.AU)$ , $Lake Resources NL(LKE.AU)$ are top 5 decliners of ASX stocks which market capital above AU$2 Bln.
Below are YTD performances and key analyses of the TOP 5 gainers:
1. $APM Human Services International Pty(APM.AU)$ -- Denied Acquisition
APM Human Services International is a supplier of employment services and other strategies.
$APM Human Services International Pty(APM.AU)$ rose 11% on no specific news.
On Sept 12 , APM denied that it was in negotiations to buy out workforce training company Angus Knight. When you combine with today's news of Adobe's acquisition and share performance, the denial could be viewed as a booster to strong performance.
Another possible reason might be that Australia’s unemployment rate ticked up 0.1% to 3.5%
Accroding to the data from marketscreener:
Analysts average target price for $APM Human Services International Pty(APM.AU)$ is AUD 3.92.
$APM Human Services International Pty(APM.AU)$ YTD performance in 2022 is 20.86%.
2. $Star Entertainment(SGR.AU)$ -- Mired In Survey But Rebounded After Announcement
$Star Entertainment(SGR.AU)$ offers the best variety of gaming, food, beverage, hospitality tourism and entertainment experiences for all guests.
The Star share price was halted at $2.66on 12th Sept. as the company was reported that it was unfit to hold a NSW casino licence.
The inquiry report has provided the casino operator 14 days to convince New South Wales authorities that it should be allowed to keep its operating licence.
Later, Star Entertainment Group said on 15th Sept.
it is developing and will implement a comprehensive remediation plan to improve its governance, culture and controls.Star's shares rose 3.4% to A$2.77 after the announcement.
Accroding to the data from marketscreener:
Analysts average target price for $Star Entertainment(SGR.AU)$ is AUD 3.4.
$Pilbara Minerals Ltd(PLS.AU)$ YTD performance in 2022 is -23.48%.
3. $Coronado Global(CRN.AU)$ -- Rising Coal Prices
$Coronado Global(CRN.AU)$ is a leading international producer of high-quality Metallurgical Coal, an essential element in steel production.
Benchmark Newcastle coal futures for October last traded at $US427 a tonne, falling from 52-week highs of $US465 a tonne. In comparison, the former peak of the futures was $US194.79 a tonne set in 2008 and stayed around $US50 a tonne in 2020.
Rising coal prices helped coal miners Coronado gain large amount of profit this year.
Macquarie reckons upgraded its rating and adjust the target price of Coronado Global at $3.50 a share, suggesting there’s more than 100% upside if the broker gets it right.
Accroding to the data from marketscreener:
Analysts' average target price for $Coronado Global(CRN.AU)$ is AUD 1.55.
$Coronado Global(CRN.AU)$ YTD performancein 2022 is 69.84%.
4. $AMP LIMITED(AMP.AU)$ - Acquisition reversal?
AMP Limited is a retail wealth management and banking business
On 30 th Aug, media rumours had it that AMP may have lobbed the winning bid, beating out a lesser offer from Colonial First State. The company enjoyed a rally in its share price amid the rumours. But it also went up when the company was reported to get out of the deal.
According to The Australian, AMP apparently will not move ahead with the acquisition, leaving the ball in Colonial First State’s court.
In addition, the company has a share buyback program of $350 million, which was announcedat the beginning of September.
However, investors should note that Shaw and Partners’ senior investment advisor has downgraded AMP’s rating to sell.
Accroding to the data from marketscreener:
Analysts' average target price for $AMP LIMITED(AMP.AU)$ is AUD 1.09.
$AMP LIMITED(AMP.AU)$ YTD performance: 20.40%.
5. $COMPUTERSHARE LIMITED(CPU.AU)$ - Benefit from higher rate
$COMPUTERSHARE LIMITED(CPU.AU)$ is a global leader in transfer agency, employee equity plans, mortgage servicing, proxy solicitation, stakeholder communications, and other diversified financial and governance services.
One possible reason of Computershare’s strong performance could be its results in FY22. Notably, it expects an earnings per share (EPS) growth of 55% for FY23.
In addition, rising inflationand rate hike may help drive Computershare share orice according to experts.
T. Rowe Price’s analyst previously noted
As the company’s main businees focuses on transfer agency, it collect cash from its businesses before handing it out to investors. But before being distributed, the cashcan generate larger returen because ofhigher interest rates.
Accroding to the data from marketscreener:
Analysts' average target price for $COMPUTERSHARE LIMITED(CPU.AU)$ is AUD 19.48.
$COMPUTERSHARE LIMITED(CPU.AU)$ YTD performance was 69.84%.
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