Morningstar cautiously optimistic on Australia's Kelsian after tourism assets sale

Kelsian

06/10/2026 20:07

** Morningstar views the A$150 million ($104.76 million) sale of Australian Kelsian Group's KLS.AX tourism assets, announced in mid-September, positively
** Investment research firm says sale gets rid of the transport and tourism operator's resort, cruise and tour businesses that depend on discretionary spending
** Says sale also sharpens management's focus and moderately reduces capital intensity
** However, Morningstar flags that the sale means that profits coming from marine division is still not "nondiscretionary" 
** Adds that sale also means earnings for co will mostly come from US motorcoaches, which have short contracts, no cost adjustments, serve volatile industries like technology and oil and gas
** Maintains A$4.30 fair value estimate for the co
** Avg rating of seven analysts suggest "buy" or higher; their median PT is A$5.35, LSEG-compiled data shows
** YTD, stock down nearly 8.5%, as of co's last close

($1 = 1.4318 Australian dollars)

 (Reporting by Aamir Sheik Khalid in Bengaluru)
 ((Aamir.SheikKhalid@thomsonreuters.com))