Daily FNArena News - Small Caps

Favourable industry restructuring has allowed Baby Bunting to become the dominant player in the baby goods segment and brokers expect strong earnings growth over the next several years.

Radio advertising markets are now pivotal for HT&E and the environment remains tough in the second half of 2019, although the third quarter could be a nadir.

It’s a tough year ahead for Nick Scali as conditions are subdued and the furniture retailing business is dependent on a turnaround in housing activity.

Significantly higher earnings are expected from Pinnacle Investment over the longer term, although the business is likely to wear some short-term volatility.

Smart phone technology company, Life 360, has performed strongly in the first half and brokers are impressed with the outlook.

High lithium inventory, trade and political tensions have impacted Orocobre in the June quarter. Nevertheless, brokers believe the business is well-positioned for when the market turns around.

FY21 will be a watershed year for Senex Energy and several brokers expect the stock to re-rate as gas production increases and LNG spot prices recover.

Brokers are increasingly confident network services provider Megaport has a bright future after the June quarter revealed significant growth in revenue and installed locations.

Lithium producer Galaxy Resources is at the mercy of weak fundamentals for spodumene, which comprises all of its production output.

AMA Group stands to benefit substantially from the trends in vehicle repairs. Moelis initiates coverage of the stock.