What are the prospects for SG Fleet?

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Question asked 09/04/2021

What are the prospects for SG Fleet?

Hi MM People! I have a question regarding SG Fleet Group Ltd (SGF). We have a position with SGF in our pension phase SMSF that we have held for some time now, and which is currently down about 20%. We have been thinking about cutting our loses. However, SGF have recently announced a plan to acquire Leaseplan AU & NZ, funded in part by an equity raising from shareholders. I see MacQuarie have upgraded SGF. Does MM have any thoughts on SGF and their merits in their sector, or on their acquisition plans? Many thanks, keep up the good work! Karl

Answer

Hi Karl,

A quick reminder that answers to Q&A are of a general nature only and don’t take into consideration your specific circumstances.

In terms of SGF, we like the deal they’ve done to acquire Leaseplan and the equity raise at $2.45 is a no brainer given the current share price. Car leasing in Australia has been strong, the only issue really has been the availability of new cars. Macquarie is not the only one to have upgraded SGF, Morgan Stanley this week raised their price target to $3.48. We like the space and hold Smart Group (SIQ) in the MM Income Portfolio.

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SG Fleet Group (SGF)

LAST UPDATED 13/01/2022 23:06

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