Qube shares jump on full-year guidance upgrade
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The news: Qube Holdings shares rose on the ASX after the logistics provider upgraded its full-year guidance after market close on Wednesday.
The numbers: Qube shares were up 7.2% to $3.52 by 2:00pm AEST.
In its trading update the Sydney-based company said it expected to deliver underlying NPATA and EPSA growth in FY24 of 10% to 15%, compared to the previous range of 5% to 10%.
Goldman Sachs analysts said that Qube also told investors that its import/export terminal in Moorebank, south-west Sydney, was expected to generate annual EBITDA of $80 million to $100 million, to be achieved within seven to 10 years of automated activities commencing at the site.
This was an uptick to prior guidance from August 2023 which forecast EBITDA of around $47 million within approximately 12 years of automated activities commencing.
The context: Jarden analysts upgraded Qube from 'overweight' to 'buy', noting that its improved earnings outlook and guidance upgrade were not reflected in its current share price. They also lifted their 12-month price target from $3.60 to $3.70.
Goldman Sachs analysts maintained their 'buy' rating on Qube, with 12-month target price of $3.70.
What they said: "Qube is showing the benefits of its diversified revenue streams but also its quality asset base and execution as a management team," Jarden analysts said in a note.
"The big swing in Qube's guidance appears to be within the agriculture and NZ forestry markets, which have seen volumes improve, driving improved operating leverage."
The sources: Jarden research, ASX announcement
