UBS upbeat on Australian small cap companies on Feb results
30/01/2024 04:59
** Analysts at UBS say headwinds to Australian small cap
companies from high interest rates has been "less severe" than
originally expected, creating a "valuation tailwind"
** Brokerage has a positive view on most emerging companies'
financial results due next month
** Mentions Corporate Travel Management CTD.AX , Hansen
Technologies HSN.AX , and Ridley Corp RIC.AX as its key "buy"
recommendations, citing upside risk to operating earnings
** UBS also recommends NEXTDC NXT.AX and Kelsian Group
KLS.AX , flagging positive risk to their earnings forecasts
** "Market returns have been positive amid a strong case of
a dovish RBA (Reserve Bank of Australia)...which has created a
valuation tailwind" - UBS
** Other "buy" recommendations include Breville BRG.AX ,
GUD Holdings GUD.AX and Webjet WEB.AX
** However, analysts see downside risks to Bapcor BAP.AX
and Objective Corporation's OCL.AX earnings
(Reporting by Aaditya Govind Rao in Bengaluru)
((Aaditya.govindrao@thomsonreuters.com;))