Morningstar upbeat on Australia's Qube; raises profit forecast, fair value estimate

Qube Holdings

02/05/2024 22:09

** Brokerage Morningstar is upbeat on Qube Holdings  QUB.AX 
after the logistics provider on Wednesday upgraded its outlook
for fiscal 2024 adj net profit after tax growth to 10%-15%, from
5%-10%
    ** Morningstar increases fair value estimate by 3% to A$3.50
per share; says co delivered "solid performance in the face of
significant headwinds to consumer spending"
    ** Lifts forecast for fiscal 2024 NPAT growth to 14% from
10%
    ** Brokerage expects solid earnings growth to generally
continue for the near term, but warns of significant headwinds
in fiscal 2025 from a higher cost of debt and likely soft
consumer spending, among others
    ** Seven of 14 analysts rate the stock "buy" or higher, six
"hold" and one "sell"; their median PT is A$3.60 – LSEG
    ** QUB up ~8% YTD, as of last close

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))