Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Warehouse shares jump to 6-wk high after Craigs' buy rating

Warehouse shares jump to six-week high after Craigs upgrades recommendation to buy

April 22 (BusinessDesk) – Shares in Warehouse Group, New Zealand’s largest publicly listed retailer, rose to a six-week high after the stock was upgraded to ‘buy’ at brokerage Craigs Investment Partners.

Warehouse jumped 1.8 percent to $3.32, its highest since March 10. That’s a discount to the stock’s 12-month price target of $3.64, Craigs analyst Chris Byrne said in an April 17 note where he upgraded his recommendation from ‘hold’.

Under chief executive Mark Powell, who notches up three years in the job next month, Warehouse is investing in its core ‘red shed’ stores and has bought 11 businesses in the past 18 months as part of a plan to grow the ‘non-red’ side of its business to be as large as the general discount stores. While investors are questioning when the investment will translate into higher profits, the retailer’s expansion into financial services by buying the Diners Club business last month is a good strategic move, Byrne said.

“Warehouse has announced that it plans to be a leading retail financial services company within five years,” Byrne said. “We are of the view that this is a good, low-risk strategy given Warehouse’s ability to build a business of scale.”

Auckland-based Warehouse aims to build a finance book worth about $600 million by 2020. Based on the earnings of Fisher & Paykel’s finance business, which was a similar size, Warehouse could build a finance business worth $68 million to $90 million in that time, Byrne said.

The business doesn’t appear to be overly risky and is an opportunity that Warehouse “should not pass up”, Byrne said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news