Transpacific Industries (TPI) has rallied over 35% since mid way through 2013 and @morgans Senior Analyst Nathan Lead sees further upside

Transpacific Industries (TPI) has rallied over 35% since mid way through 2013 and @morgans Senior Analyst Nathan Lead sees further upside. Following a recent review of their valuation for TPI the broker remains comfortable with a $1.30ps valuation. The key upcoming event is the imminent sale of TPI's NZ operations. The recent rise in the NZDAUD should be beneficial for A$ sale proceeds. The NZ sale will likely see a significant de-leveraging of TPI's balance sheet, giving it plenty of firepower for future growth investment. It should also allow the dividend to be reinstated. We're interested to see what impact the new CEO (Robert Boucher) will have on investor confidence. Given his operational background, we're expecting to see operating improvements. Morgans have an add recommendation on TPI with full blog post available here (VIEW LINK)