Daily FNArena News - Australia

Brokers are unsurprised by a guidance upgrade from fruit&veg producer Costa Group and believe the market is already way ahead.

Packaging business Pact Group has acquired two major packaging operations in Asia and a bulk containers reconditioning business in WA. Brokers views are positive but cautious.

Incitec Pivot has started FY18 from a strong position, as fertiliser prices have improved, the Australian dollar is weaker and the outlook for the US explosives market is buoyant. But brokers are not convinced.

Computershare has upgraded guidance, attributing a lift in performance to a stronger contribution from corporate actions and mortgage services. Brokers have taken this in their stride.

Citing a delay in the timing of client decisions, Iress has downgraded 2017 guidance. Brokers are somewhat underwhelmed by the outlook.

Accounting software business Xero has rallied sharply in the year to date and most brokers believe the share price now exceeds valuation by a large measure.

Growth drivers for Janus Henderson are tracking ahead of most expectations and brokers are more confident regarding the outlook.

EclipX fleet operations appear stable, despite competition, while impairments are benign and end-of-lease outperformed in FY17. All up, brokers are increasingly confident in the outlook.

Uncertainty regarding penalties for non-compliance at Commonwealth Bank is weighing on the share price, although brokers acknowledge a solid first quarter.

Explosives supplier Orica provided a subdued outlook and is not expected to show the benefits of a rebound in activity until FY19.