Earnings certainty is a prerequisite

Morgans Financial Limited

Morgans Research Analyst, Scott Murdoch, says that earnings certainty is a must this reporting season. One stock he has singled out as having one of the highest earnings certainties among his coverage is Vita Group. While it has plenty of earnings potential over the medium term, he’s taking profits as it’s currently trading above his target price. Any price weakness could provide an opportunity to re-enter. One stock which is displaying value is Smart Group. While it has a higher regulatory risk in the short term while tax reforms are debated, he expects no changes to fringe benefits tax in the near term. If the regulatory environment does improve, he sees up to 25% upside from the current price. Watch the video below to see his thoughts on these 2 and Villa World.

Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management firm, with more than 300,000 clients, 500 authorised representatives and 850 staff, operating from offices in all states and territories. As well as...


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reporting season ASX:SIQ ASX:VTG ASX:VLW


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