General | Feb 04 2006
With CSR (CSR) having jumped by around 24% over the past month, despite a host of negative opinions from the major Australian brokers and equity advisers, the analysts at Tolhurst Noall feel now may be the time to start taking profits.
The reason the stock ended up “embarrassing almost all the brokers” was the sharp rise in the price of sugar in the past couple of weeks after Cyclone Larry, but now the things have quietened down a bit Tolhursts voices the opinion that perhaps the time is now ripe to see “value in the broker comments rather than just bagging them for getting it wrong in the short term.”
Tolhursts calculates the stock is trading on a PE of 19x with a yield of 2.9%, which it says “is a bit rich” for a stock that is only expected to grow earnings by around 7% this year.
Of the ten major brokers and equity advisers in FN Arena’s universe covering the stock, one (ABN Amro) rates it positively, seven are neutral and three say sell.
