Best calls to action 27 August: BHP, CTD, APE, NXT
Happy to Buy today: BHP - posted a solid result (given tough environment) that supported the strategy put forward by its management team to prioritise free cash flow and dividends over scale and growth. We view this strategic setting as a key competitive advantage, reassuring us that BHP is focused on maximising capital efficiency during a period of great uncertainty for commodity prices. Corporate Travel Management - FY15 was a strong year for both earnings growth and completing its global footprint. Increased market share, new acquisitions, improving corporate travel demand, higher airfares and a falling AUD should underpin strong double digit earnings growth for many years to come. A.P. Eagers (APE) - While well guided, APE's 1H15 result exhibited exceptional growth on the pcp (NPBT +30%). Despite obvious tailwinds at play in the period which will likely ease somewhat, management is confident of a similarly strong result in the 2H. NextDC - reported an impressive FY15 result which was at the top end of guidance and paves the path for a three-fold increase in EBITDA profit in FY16. More: (VIEW LINK)
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