Forsyth Barr upgrades Hellaby to 'buy'
More good news for Hellaby after solid year-end result.
Forsyth Barr has increased its forecasts for listed investment company Hellaby Holdings (NZX:HBY) and upgraded its recommendation to "buy."
Forsyth Barr has increased its sales and ebit forecasts for the 2012 financial year by 3.0% and 4.1% respectively following a meeting with management.
"Whilst trading conditions remain challenging there are clear signs demand conditions are stabilising and pockets of growth are beginning to emerge. The restructured business units are now highly leveraged to any pick up in economic activity," Forsyth Barr analyst John Cairns says.
"Hellaby has the balance sheet to pursue acquisitions which we consider will be focused around the automotive and industrial distribution sectors. Management has transformed Hellaby over the last two years and we rate acquisition risk as low. We have upgraded our recommendation from accumulate to buy."
Hellaby, which owns a range of companies including Number 1 Shoes and Elldex Packaging, recently announced a 49% increase in its full-year net profit.
Niko Kloeten
Tue, 13 Sep 2011
Tue, 13 Sep 2011
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Forsyth Barr upgrades Hellaby to 'buy'
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