New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Mainfreight (MFT) enjoyed some significant COVID-19 tailwinds as (1) the freight rate super cycle boosted Air &amp; Ocean (A&amp;O) earnings, and (2) the twin benefits of the flight to quality and just-in-case logistics helped volumes.</li><li>MFT trades at a meaningful discount to its closest international peers that are ahead of it in their respective downgrade cycles.</li><li>While the near-term outlook appears more challenging for MFT, we are conscious that investors have some protections from (1) its consistent ability to win new business, (2) its relatively defensive industry vertical exposures, and (3) management's track-record of always taking advantage of a downturn.</li></ul>

Mainfreight (MFT) enjoyed some significant COVID-19 tailwinds as (1) the freight rate super cycle boosted Air &amp; Ocean (A&amp;O) earnings, and (2) the twin benefits of the flight to quality and just-in-case logistics helped volumes.MFT trades at a meaningful discount to its closest international peers that are ahead of it in their respective downgrade cycles.While the near-term outlook appears more challenging for MFT, we are conscious that investors have some protections from (1) its consistent ability to win new business, (2) its relatively defensive industry vertical exposures, and (3) management's track-record of always taking advantage of a downturn.

Mainfreight: Rightsizing the Earnings Outlook

Mainfreight Ltd

Mainfreight: Rightsizing the Earnings Outlook