Bell Potter Analyst, Jonathan Snape, has retained a Buy recommendation on Seven Group Holdings (SVW)

Bell Potter Analyst, Jonathan Snape, has retained a Buy recommendation on Seven Group Holdings (SVW). While the market may be uncomfortable with long duration assets like Nexus Energy (NXS) in an Industrial conglomerate structure, the issue as always should be about value. In our view, acquiring distressed assets at the bottom of the equity value cycle is not necessarily a bad thing and NXS would look a relatively lower risk initial step into gas, given current SVW CEO Don Voelte was previously Chairman of NXS. Deploying what in hindsight will look to be around 5-6% of group EV in a business where there is management familiarity as SVW moves into its next growth phase looks a reasonable first step to us and we retain our Buy rating with our forecasts and target price unchanged at $8.75ps. Bell Potter analyst reports are available to our clients via (VIEW LINK)