ALU soared over 6% yesterday on no apparent news except the reawakening of M&A speculation after the increased bid for Sydney Airports (SYD) feels likely to be successful. We believe this software business is good value under $35 even after the company rejected Autodesk’s (ADSK US) $5bn bid which was rumoured to be pushed up to $40 before the suitor walked. While ALU is not in the cheap corner, it’s earnings have turned a corner and strong growth has resumed – an increased bid still wouldn’t surprise us.
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