TWE – Buy

Posted on | by Leon Hinde

Treasury Wine Estates is under Algo Engine buy conditions.

TWE continues to adjust to a post pandemic/post Chinese tariff environment. FY21 EBIT of $510 exceeded market expectations. After a number of years of disappointment for TWE in this region, we see America’s division accelerating growth into FY22.

FY22 EBIT growth is forecast to be in the mid to high single-digit range.

8/11 update: Buy above the $11.50 support range and place the stop loss below the recent pivot low of $11.48.

Lendlease – FY22 Outlook

Posted on | by Leon Hinde

Lendlease has warned of a challenging year to come as COVID-19 puts a dampener on development and construction globally.

FY21 net profit after tax of $377 million was in line with the company’s guidance, largely due to divesting its loss-making engineering and services.

We expect to see an improvement in earnings towards the end of FY22.


REA Group is up 67%

Posted on | by Leon Hinde

REA Group is among the best-performing stocks in our ASX 100 model portfolio, with the share price up 67% since being added in September last year.

REA Group has acquired 100 percent of the shares in Mortgage Choice for $1.95 a share, valuing the company at $244 million. REA is now focused on accelerating its financial services strategy to become a leading player in the home loan market.

REA is a high quality business with terrific growth potential, however, the 65x PE multiple is a little rich and we recommend waiting for the next Algo Engine buy signal.

5/11 update: REA Group delivered 22% revenue growth for Q1 FY22.