Australia's Kelsian rises after asset sale draws cautious optimism from Morningstar

Morningstar

07/10/2026 05:24

Updates
** Shares of Kelsian Group KLS.AX rise as much as 1% to A$3.93 before paring gains to 0.3% by Sydney midday
** Morningstar views the A$150 million ($104.76 million) sale of transport operator's 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 the marine division are still not "nondiscretionary" 
** Adds that the sale also means earnings for the co will mostly come from US motorcoaches, which have short contracts, no cost adjustments, and serve volatile industries like technology and oil and gas
** Stock down 8.2% YTD
     
($1 = 1.4318 Australian dollars)

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