The Shell-branded service station operator recently acquired Coles Express for ~$300m, the deal created the largest fuel/convenience footprint owned by one company in Australia. VEA is an interesting option for more defensive/lower risk portfolios, the stocks trading on an Est PE of 6.4x for 2022 earnings while it’s estimated to yield around 3.7% over the next 12 months.
- We can see VEA again testing $3 into 2023 but the risk/reward isn’t overly exciting at current levels although it is trading at ~30% discount to its historical average valuation.
MM is neutral to mildly bullish VEA around $2.60
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