Australia's DGL Group rises on positive outlook; UBS cuts earnings view

DGL

16/11/2022 01:30

** Chemicals manufacturer DGL Group  DGL.AX  rises as much
as 5% to A$1.80, its highest since Sept. 12
    ** Co expects FY23 underlying EBITDA between A$70 mln and
A$72 mln ($47.24 mln-$48.59 mln), with earnings expected to be
skewed towards 2H23
    ** DGL had underlying EBITDA of A$65.6 mln a year ago
    ** UBS says assumptions underpinning guidance "conservative"
given exposure to commodity and end-market prices
    ** Brokerage maintains its EBITDA estimate view; hikes
interest expense forecast on DGL's likely increased net debt
position in FY23 and rising interest rates
    ** Cuts FY23-25 underlying NPAT view by 1%-5%
    ** DGL stock down 45.2% this year, as of last close, vs a
5.6% decline in the ASX All Ordinaries index  .AORD 
($1 = 1.4817 Australian dollars)
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))