Sandstone Insights research is prepared by MST Financial Services Pty Ltd (MST). MST’s experienced analyst team delivers new investment ideas and value-added perspectives on ASX listed companies across all sectors, in large, mid and small-cap.
Back to school
IDP Education (IDP) is a global organisation that helps international students find and apply to study at universities and schools around the world. It also distributes the International English Language Testing System (IELTS). IDP has two main operating divisions: student placement, where it acts as a recruiting agent on behalf of universities, and the IELTS. It also generates revenues from English teaching classes and from marketing events.
It's not San Fran
Dexus remains the most heavily discounted AREIT despite the changing conditions for office operators and easing macro headwinds. News coming out of the US seems to be driving fear in the Australian market despite the landscape being vastly different.
A battle of sentiment
Financial contagion concerns weigh on the share price. Challenger share price has fallen ~$1.50 since early March on fears of financial contagion stemming from the US banking crisis.
Cycle turns in US
Consecutive earnings guidance downgrades for FY23 (year end 31 March) is now being overlooked in favour of a positive change in US housing market index data. Peers of James Hardie are reporting subtle but improving trends in activity.
Fairly Priced
Investor day was underwhelming: MMS presentation provided investors with a greater understanding of the group’s growth direction and the macro theme across each of the divisions.
Pendal cost issues
Perpetual came out with its 3Q23 Business update and gave some insight to how the merger with Pendal has been progressing.