Morningstar initiates coverage on Australia's Redox at premium

Redox

20/01/2025 20:01

** Morningstar initiates coverage on Redox  RDX.AX  with a
fair value estimate of A$4.8, a 14.8% premium to stock's last
close on Monday
    ** Investment research firm rates Redox with "medium"
uncertainty
    ** Redox is a chemical distributor for various industries,
including personal care and construction
    ** Morningstar says the market underestimates the firm's
growth opportunities as the largest distributor of chemicals in
Australia, serving about 200 subsectors
    ** Says Redox expected to produce economic profits or return
on invested capital above the cost of capital over Morningstar's
10-year forecast period
    ** Adds co benefits from taking share in a fragmented
chemicals market, occurring as other businesses shrink or exit,
or with new customers from acquisitions
    ** Stock has fallen 8.3% so far this year as of last close

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com;))