WiseTech stock hit its highest level since April, driven by strong corporate earnings expectations. The logistics company is on track to beat its profit forecast, propelled by the global economic rebound. The increased activity has boosted shipments around the world, increasing demand for its logistics products, Macquarie analysts said.
The company is on track to beat the highest profit forecast for the year ending June 30, analysts said in a research note on Monday.
Nuix, the data analytics firm, was an outlier among tech groups and suffered a further downturn as the Australian Securities and Investments Commission began investigating how much control Macquarie had over the company. company prior to its IPO last year.
Sydney-based Nuix was the largest initial public offering of 2020 when it was listed in December, but its shares have plunged in recent months.
The company’s shares fell 2.6% to $ 2.70, reversing the previous day’s gains as the stock price rebounded from a record low.
The company’s stock price has fallen three-quarters from its January high and is almost half the price investors paid when the company went public six months ago.
A2 Milk shares fell 2.1% to $ 5.70, weighing on the company’s stock price after a dismal year driven by trade with China and stocks collapsing if sales do not pick up.
The dairy group’s share price has slumped more than 70% from a peak last July, and May hit a four-year low, before climbing slightly over the past week.
Late last month, law firm Slater and Gordon said it was considering a class action lawsuit on behalf of the aggrieved shareholders.
“We see a downside risk to a2’s medium to long-term consensus EBIT margin,” Citi analysts said, referring to earnings before interest and taxes.
Citi analysts have warned a2’s desire to expand its business in China, which could weigh on margins as sales in the country are generally less profitable than those in other regions.
“The company will likely need to invest in marketing / promotions to better compete with its larger domestic and multinational competitors on this channel,” analysts said.
The lackluster stock trading came on the same day the NAB said its survey of Australian business conditions hit a record high in May, with its index climbing nearly 32 points to a record high of 37, 2 points.
“Australian trading conditions are the strongest on record, with companies enjoying the best trading conditions, profitability, forward orders and employment since the start of the NAB series in March 1997,” said Ryan Felsman, economist principal for CommSec.
“Business conditions are best in the mining states, Western Australia and Queensland, with conditions strongest in finance, real estate and wholesale,” said Felsman .