Prospects for Lindsay Australia (LAU)
I notice a worrying downtrend for LAU since its peak in July 2023 of $1.40, now languishing at $0.84. The chart signals a sell although there are 1 strong buy and 4 buys by analysts. What is your opinion?
The Latest Q&A
Answer
Hi Kenneth,
The recent trend is discouraging with the stock down almost 30% from its 2024 high as it tests 18-month lows as the week comes to a close. This integrated transport and rural supplies business now yields ~6% fully franked which is appealing to any investor as global interest rates start to edge lower. However, the companies trading update in May fell short of expectations with EBITDA expected to be between $88 million and $94 million in FY 2024.
- We believe it’s too early to adopt a contrarian approach towards LAU – earnings momentum is weak.
