NZ shares slide into the weekend

New Zealand’s benchmark equity index fell marginally on Friday, bringing the full week decline to roughly 1.8%.

Friday, May 27th 2022, 7:31PM

by BusinessDesk

New Zealand’s benchmark equity index fell marginally on Friday, bringing the full week decline to roughly 1.8%.

The S&P/NZX 50 Index fell 38 points, or 0.3%, to 11,065.15. Turnover was $112.1 million.

Fleet management company Eroad led the decline for a second day, falling 7.4% to $2.52 as investors continued to react to the company underperforming expectations in its full year result.

Jarden analyst Guy Hooper lowered his target price by 70c, bringing it down to $3 with a ‘neutral’ rating.

The established and profitable NZ business should protect much of the stock’s value, he said, but the opportunity in the US might be limited by poor delivery and more difficult economic conditions.

Chemical logistics company DGL Group dropped 4.4% to $3.06 after it announced it would abandon its dual listing and be listed only on the ASX.

The move has been interpreted as a reaction to the criticism the company’s chief executive received for making disparaging comments about My Food Bag co-founder Nadia Lim.

Ryman Healthcare declined 2.4% to $10.10 and Pushpay fell 2% to $1.44, but has been trending upwards in recent days.

Plexure Group jumped 11.4% to 24.5 cents after it announced it would provide full year earnings results and host an analyst call on Monday.     

Fellow technology stock Vista Group International rose 6.2% to $1.54 after it told shareholders it had achieved $100m in annual recurring revenue this quarter.

Mainfreight declined 0.6% to $75.51 despite equity analysts giving glowing reviews of the logistic company’s full year results.

Forsyth Barr said the result was “exceptional” and raised its target price to $82, while Jarden said it was “a strong end” to the 2022 financial year with earnings ahead of its forecasts.

Shares in Pacific Edge were unchanged at 77 cents today with analysts less happy about its result.

Jarden’s Christian Bell said the “soft result” had prompted him to cut revenue estimates from $22m to $17m in 2023, and from $40m to $26m in 2024.

Fisher & Paykel Healthcare slid 0.3% to $19.50. Forsyth Barr analysts said the company’s forward guidance was “opaque”. The business is well positioned for long-term earnings growth, but the stock was already expensive relative to comparable companies.

The NZ dollar was trading at 65.04 US cents at 3pm in Wellington, up from 64.70 cents yesterday. The trade weighted index was at 72.34 from 72.12.

Tags: Market Close

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