Toll (TOL) Share Recommendation

Toll (TOL) has had their Outperform rating retained and a share price target of $16.80 from Macquarie Research Equities (MRE). The stock analyst have noted that comments at the Toll Holdings AGM were encouraging and the outlook statement positive. MRE reports that Toll's integration of Patrick and Semblog is proceeding well and revenues and earnings in the period since June 2006 are slightly ahead of plan. The company have also noted that "Since completion of the Patrick acquisition, financial results and operating performance across the total Pacific National business are showing significant progress and improvement". But grain volumes are "well down on forecast". MRE notes that this is consistent with their own forecast. With respect to integration: "The integration of general port operations, international forwarding and logistics activities, together with administrative functions, is largely complete and generating savings in line with forecast". MRE noted that "This was originally $61m over three years, with management subsequently confirming it would do better than this on costs. MRE are forecasting $50m in FY07, increasing to $80m in FY08."

Toll Holdings Limited is listed on the Australian Stock Exchange (ASX) under stock code TOL. You can view their investor website here. TOL was listed on the ASX on 12 October, 1993. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Toll Holdings was a Winner of the week. Toll Holdings is involved in local freight distribution; Interstate freight forwarding by road, rail and sea; Container packing and unpacking; Warehousing, storage and distribution; and Recycling. A previous Toll Stock Tip. Toll is part of MRE's defensive stock portfolio. Check your charts and good luck with your share trading!