Jefferies views fuel suppliers Ampol, Viva Energy as 'positive' on resilient demand

Waypoint REIT

06/01/2023 24:39

** Brokerage Jefferies sees Australian fuel suppliers Ampol
 ALD.AX  and Viva Energy  VEA.AX  as "positive" on resilient
demand and capital management potential
    ** Jefferies has price target of A$36.50 for Ampol and cuts
Viva's PT by A$0.05 to A$3.25
    ** The fuel retail industry remains very rational, with
marginsabove long-run averages, despite the reinstatement of the
fuel excise - Jefferies
    ** Brokerage says refining margins for VEA and ALD were
slightly below their initial assumption in Oct, despite the
strong finish, resulting in downgrade of earnings forecast for
both firms
    ** Jefferies sees ALD's earning per share decline by 3% for
FY22 and FY23; sees VEA's EPS to decline by 4% and 2% in FY22
and FY23, respectively
    ** Nine of 11 analysts rate ALD "buy" or higher, two "hold"
and none "sell"; their median PT is A$35.35 – Refinitiv Eikon
data
    ** Seven of 11 analysts rate VEA "buy" or higher, four
"hold" and none "sell"; their median PT is A$3.25 – Refinitiv
Eikon data
    ** Shares of VEA down as much as 1.7% to A$2.575, while
ALD's shares down as much as 0.8% to A$27.16 
 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))