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>Appearances can be deceptive. Mercury (MCY) reported a strong 1H24 EBITDAF result of NZ$434m, albeit at first glance it appears soft vs. 1H23 and our expectations.</li><li>In addition, the FY24 guidance upgrade appears very strong, but rising opex is masked by gains that cannot be banked on to repeat in future years.</li><li>Whilst we lift our FY24 EBITDAF forecast +5.3%, as FY24 is tracking ahead of expectations, we lower our target price -8cps (-1.5%) on higher long-term opex and stay-in-business capex assumptions. </li></ul>

Appearances can be deceptive. Mercury (MCY) reported a strong 1H24 EBITDAF result of NZ$434m, albeit at first glance it appears soft vs. 1H23 and our expectations.In addition, the FY24 guidance upgrade appears very strong, but rising opex is masked by gains that cannot be banked on to repeat in future years.Whilst we lift our FY24 EBITDAF forecast +5.3%, as FY24 is tracking ahead of expectations, we lower our target price -8cps (-1.5%) on higher long-term opex and stay-in-business capex assumptions. 

Mercury - Trading Comes With a Cost — 1H24 Result

Mercury NZ Ltd

Mercury - Trading Comes With a Cost — 1H24 Result