Foster's Group (FGL) News Update
Further Reading
Bookmark & Share
Foster's Group (FGL). The target has price increased from A$5.65 to A$6.10 from sharemarket analyst Macquarie Research Equities.
Foster's Group (FGL) Ltd: Change Is In The Air
Upgrade to Buy — The potential for improved operational execution and/or structural change at FGL has materially increased. The company has commenced an international search for a new CEO following the resignation of Trevor O’Hoy. It is also undertaking a review of its wine operations, which could have wider positive strategic implications.
Structural Change — The already commenced Strategic Wine Review will “consider the optimal structure and operations of our wine business into the future.” The Board’s acknowledgement that it paid too much for Southcorp, poorly executed integration and the need to deliver value to shareholders suggests structural change including potential divestment(s) will be considered.
CEO Search Begins — The Board will consider both external and internal candidates for CEO. We favour an external candidate who can bring the operational expertise and experience necessary for improved execution. The incoming CEO is likely to have input into the Wine Business Review.
Earnings Guidance — FGL has downgraded FY08 guidance to below consensus. Revised guidance is for NPAT (pre-significants) of A$700-715m. Our bottom-end estimate of A$700m remains unchanged. The company also announced it expects non-cash wine business writedowns of A$670-770m to reflect asset impairment and surplus bulk wine inventory.
Re-Rating Justified — We expect a re-rating of FGL shares. The valuation gap to international peers will likely close as sentiment improves given the potential for better execution. Moreover, the potential for wine asset divestment(s) could help to unlock further value. Our target price increases from A$5.65 to A$6.10.
ANZ E*Trade is offering you $550 worth of free brokerage.
invest.etrade.com.au
Search
Must Read Articles
- Australian Electronics Retailer Companies
- Australian Fashion Companies
- 8 Steps to Scalp the Forex Market
- Australian Media Companies
- Australian Television Companies
- Australian Newspaper Companies
- Australian Publishing Companies
- Australian Internet Companies
- Australian Radio Companies
- Australian Telecommunications Companies
- Australian Automobile Industry Companies
- Australian Capital Goods Companies
- Australian Commercial Services Companies
- Australian Consumer Durables Companies
- Australian Consumer Services Companies
- Australian Online Share Trading
- List of Trading Books
- Interesting Thoughts about the Australian Dollar
- What's the Meaning of Hawkish?
- Do You Know How To Use the P/E Ratio
- Trading, Religion and Politics - Do They Have Anything in Common?
- Shares that are Volatile that Double and Half in the Short Term
- Telstra (TLS) T3
- Margin Call by E-mail
- The Cost of Holding a Position
- Lack of Disclosure: Compensation from ASX Listed Company
- Unrealistic Returns and Benchmarks
- CMC Markets Down
- Quality versus Quantity Forex Trading
- Trading Risk and Leverage Case Study
- China Exonerates Rio Tinto on Merger
Date added 14-03-2010 - The Losing Companies of the 10th Week
Date added 13-03-2010 - The Winning Companies of the 10th Week
Date added 13-03-2010 - Oroton Profitable
Date added 11-03-2010 - Myer Sales Warning
Date added 11-03-2010 - Orica's Tax Bill
Date added 10-03-2010 - Qantas Yields Turnaround
Date added 10-03-2010 - Qantas Troubles
Date added 09-03-2010 - Top 3 Winners of the ASX for This Week
Date added 09-03-2010 - Top 3 Losers of the ASX for This Week
Date added 09-03-2010 - Arrow Energy Takeover Bid
Date added 08-03-2010 - Australian Gold Mines 2010
Date added 07-03-2010 - Dai-Ichi Mutual Life Insurance APRA Approval
Date added 04-03-2010 - Coking Coal Prices Jump
Date added 03-03-2010 - Tatts Group Buys NSW Lotteries
Date added 01-03-2010
Top 150 Public Companies Listed on the Australian Stockmarket as at 29/05/2009
- BHP Billiton
- Westpac Banking Corporation (WBC)
- Commonwealth Bank of Australia (CBA)
- National Australia Bank (NAB)
- Telstra (TLS)
- ANZ
- News Corporation (NWS)
- Woolworths Limited(WOW)
- Woodside Petroleum Limited (WPL)
- Rio Tinto
- Westfield Group (WDC)
- Westfarmers Limited (WES)
- QBE Insurance
- CSL
- Newcrest Mining Limited (NCM)
- Origin Energy Limited (ORG)
- Santos Limited (STO)
- AMP Limited (AMP)
- Maquarie Group (MQG)
- Foster’s Group Limited (FGL)
Company Profiles
ASX GICS Sector Company List
- Automobile & Components
- Banks
- Capital Goods
- Commercial Services & Supplies
- Consumer Durables & Apparel
- Consumer Services
- Diversified Financials
- Energy
- Food & Staples Retailing
- Food Beverage & Tobacco
- Health Care Equipment & Services
- Insurance
- Materials
- Media
- Pharmaceuticals, Biotechnology & Life Sciences
- Real Estate
- Retailing
- Semiconductors & Semiconductor Equipment
- Software & Services
- Technology Hardware & Equipment
- Telecommunication Services
- Transportation
- Utilities

Delicious
Digg
StumbleUpon
Facebook



Post new comment