Rachel Alembakis reviews broker analysts reports in the days following Budget 2017-18.
In this analysis of Treasurer Scott Morrison’s Budget 2017-18, we examine first the macro-economic forecasts and assumptions to the proposals, then look in turn to the biggest announced pieces to the puzzle and possible equity impacts – the banks levy, the lifting of the Medicare cap, housing affordability measures (or lack thereof), infrastructure, insurance and superannuation, and retail.
It was a good day to be a CEO when Downer EDI’s Grant Fenn delivered an 8.5 per cent increase in interim net profit and forecast a profit upgrade on the release of their first half results for FY16/17. The sharemarket responded immediately and their stock price soared 13% to a six year high.
Downer is a leading provider of services including: Transport; Technology and Communications; Utilities; Engineering, Construction and Maintenance; Mining; and Rail. But even with their diversified portfolio of work Fenn tells Alan Kohler that they still face pressure from competitors, contracts ending and customers taking their services in-house.
The Constant Investor publication and related content is provided for general information purposes only and should not be considered personal advice. Anyone seeking to rely on content should seek their own legal, financial and taxation advice. Kohler & Company Pty Ltd, trading as The Constant Investor, is an AFSL Authorised Representative No. 1244896 of Melbourne Securities Corporation Ltd AFSL 428289.