Daily ShareChat: Mainfreight

By Jenny Ruth

Sunday 12th June 2011

The outlook for Mainfreight remains positive in all its geographies, "game on," says Geoff Zame at Craigs Investment Partners.

"Outlook comments were positive with the start of full-year 2012 demonstrating similar momentum to the fourth quarter of 2011 across Mainfreight's increasingly global operations," Zame said.

"The full-year 2012 earn-out on the European (Wim Bosman) acquisition underwrites its near-term performance in our view."

Mainfreight reported a 22% rise to $48 million in adjusted net profit for the year ended March.

Zame says Australian international was a little softer but the key sources of incremental growth, the US and Australian domestic operations, continue to improve with revenue growth now translating to modest growth in operating earnings.

New Zealand domestic operations gained market share, particularly in the fast-moving consumer goods area, while New Zealand international growth was driven by increased import volumes with the high New Zealand dollar keeping export volume growth muted.

Zame has raised his forecast net profit for the year ending March 2012 to $66.2 million from $63.9 million previously and raised his 2013 forecast to $71.6 million from $67.2 million.

He has also raised his 12 month target for the shares to $10.22 from $9.36 previously.

Recommendation: buy (upgraded from hold).

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