Allco Finance Group (AFG) Stock Recommendation

Stock analyst Macquarie Research Equities (MRE) have an Outperform rating and a $13.45 share price target for the Allco Finance Group (AFG) stock. This stock price target was reached by applying a price to earnings multiple of 16x FY08E EPS, a 6 percent premium to MRE's industrial peer multiple of 15.1x. Formerly, Record Investments, Allco Finance Group (AFG) reported a stellar result according to the stock analyst but the market took profits leading the stock 4 percent lower on the day. The company has an Earnings Per Share (EPS) growth of 55.7% was delivered which amounts to average annualised growth of 62.7% since Record was listed in May 2002. The result was driven by strong invested funds growth of 50% and a stable yield. A fully franked final dividend of 21 cents per share was declared taking the full year to 41 cents per share, up 34%. AFG has spent a further $156 million in FY06 to acquire 17 additional aircraft to their portfolio of 34. The outlook for the Allco Finance (AFG) aircraft leasing product is strong and they expect further market penetration of new carriers in Asia and Europe. It could be a booming market in the next three years with two new fuel efficient jets being released from Both Boeing and Airbus.

Allco Finance Group Limited is listed on the Australian Stock Exchange (ASX) under stock code AFG. You can view their investor website here. The Allco Finance Group company is involved in investing in businesses & assets which cover niche financial products such as equipment leasing, securitisation, funds management, placement and underwriting of financial risks and other structured financial investments in order to provide an alternative exposure to the financial services industry. AFG was listed on the ASX on 28 February, 2001. Find out the meaning of the recommendations in this primer. Browse for other broker recommendations. Check your charts and good luck with your share trading!