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MM’s views on KLS and VNT please

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MM’s views on KLS and VNT please

Hi James and team, Thank you for your informative daily reports and especially the portfolio positioning comments. What are MM's views on the outlook for KLS and VNT please? Brokers' ratings on both securities are positive but they have been on a trend decline. Would you rate each as a SELL or BUY? Thank you and kind regards, Adel

Answer

Hi Adel,

Two stocks that recently came across our radar, with more work to do  on both.

Kelsian Group (KLS) $6.00 – This tourism and transport business has struggled under the same combined issue of labour shortages and rising wages that has plagued many, at this stage we would rate it as Neutral with the stock having made no meaningful progress all year.

Ventia Services Group (VNT) $2.69 – This infrastructure services company’s stock hasn’t really moved after its initial ~25% rally post listing in late 2021. This $2.3bn business initially screens well trading on a conservative 12.3x valuation while it yields over 6% of which 80% is fully franked. The stock delivered revenue in excess of $5bn in 2022 and we can see this sleeping giant catching investors attention in the months/quarters ahead i.e. MM is neutral to bullish on VNT.

We will likely write about both in the future.

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Kelsian Group (KLS)
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