Rising interest rates pressured valuation on Aussie emerging companies - UBS

DGL

10/03/2023 02:21

** Analysts at UBS say that negative consensus earnings
revision for emerging Australian companies in the last two
months reflect rising interest rate challenges
    ** Says YTD best performers under their coverage include
Eagers Automotive  APE.AX , automotive parts maker GUD Holdings
 GUD.AX  and chemical manufacturer DGL Group  DGL.AX  
    ** UBS says many companies in February reported weaker cash
flow as compared to bottom line metrics with rising inventory
levels; adds costs are intensifying in some sector 
    ** Brokerage says companies are delaying large projects with
high capital investment due to sharp cost inflation and higher
cash rate environment 
    ** Adds retailers saw pause in high-priced items being
bought as consumers turned towards low-priced staples
    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))