TLS +0.51%: Held a strategy day to announce their T25 strategy which sounds impressive and the update was. This is clearly a company with better times ahead and the tough decisions taken in recent years are starting to pay off. Their key targets are for mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) growth out to FY25 and to maximise fully-franked dividends which will grow over time. They also guided to a further reduction in costs and a bunch of other net positive things from an operational perspective. While TLS is now fully valued in our opinion, hence our recent reduction in weighting for the income portfolio, we like their approach and the trajectory of the business. I suspect we’ll see upgrades on the back of today’s briefing.
MM is neutral TLS around $4.00
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