Telstra, BUBS share prices drop, Boral rebounds | ASX 200 risers & fallers
Telstra and Bubs Australia both faced a rocky week, while the Boral and Speedcast share prices rebounded strongly. Overall, the ASX 200 rose, hitting 6649 points on Friday afternoon.
ASX 200 rises as optimism returns
It was an interesting week for the Australian share market: the RBA announced that it intended to keep interest rates on hold at 1.00%, while the US and China showed signs of making progress towards resolving their trade disputes.
During all this and from Monday to Friday, the ASX 200 rose 46 points – approximately 0.7% – hitting the 6649 point-mark, as of 15:21 AEST today.
Below we take a brief look at some of the risers and fallers on the ASX 200 this week.
Speedcast soars: up 48% since Monday
The SpeedCast International Ltd (ASX: SDA) share price was battered last week, dropping as much as 55%, after delivering 2019 half-year results that undershot investor expectations.
It looks as if this sell-off was significantly overdone, with the Speedcast share price rising a massive 48% since Monday – from A$0.80 to A$1.18 per share today.
Boral share price recovers from sell-down
Results that fail to meet expectations always have the potential to yield divisive results. In this instance, Boral Ltd (ASX: BLD) suffered a similar fate to Speedcast.
When the building and construction giant reported its FY19 results last week, where it was revealed that statutory profits (NPAT) fell from A$441m to A$272m, its share price fell off a cliff – dropping 20% in a single trading session.
However, just like Speedcast, Boral has seen its fortunes reversed in the last five trading sessions: rising from A$4.25 to A$4.44 per share.
Indeed, an upgraded price rating from neutral to buy and a A$5.20 price target from UBS suggests that the initial response from investors was indeed overly bearish. UBS appreciates that Boral has articulated a clear strategy for its Australian business moving forward and were impressed by the growth of the company’s Fly ash business.
Telstra share price drops as FY20 guidance is revised
Telstra’s (ASX: TLS) shares have performed poorly since the company released its FY19 report last month – dropping around 8%.
Volatility continued this week, after the telco released updated FY20 guidance figures to the market.
Here and off the back of the NBN Co’s latest 2020-23 corporate plan, Telstra advised the market that it expected both lower FY20 revenue and free cashflows after operating lease payments.
Mind you, it wasn’t all negative, with Telstra Corp Ltd revising their FY20 earnings (EBITDA) upwards: from A$3.4 to A$3.9bn to A$3.3 to A$3.8bn.
Even with this guidance change, the Telstra share price has been a strong performer YTD, rising 29% in that period.
BUBS share price dips following 163% run-up
Bubs Australia Limited has seen its share price pullback somewhat this week, dropping 2.44%, even after reporting strong growth figures during its FY19 results.
Specifically, when the small milk company released its full-year results, it reported that revenue was up 153%, with its Chinese segment seeing even better top-line growth of 209%. BUBS’s full-year revenue came in at A$46.8m.
Taking a broader perspective, investors would do well to rememeber that BUBS has already seen its share price skyrocket 163% since January.
BUBS Australia (ASX: BUB) currently has a market capitalisation of A$631.98m.
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