For as long as I can remember, it always takes the market a few days to wake up to ASH's results.
This was a great result. I had high hopes, and it met them at the EBITDA level and was even stronger at EPS due to lower tax and D&A. It will take some time for the market to digest the working capital cash outflow, but I suspect there was a big cash inflow in Jan and this is all about strong growth. More importantly, the growth appears to have accelerated through the quarter, which bodes well for H2.
Further s/p upside is likely - I still believe a push to 70c is likely and can be comfortably justified if the FY results are in line with my forecasts (which are only a doubling on the HY result and could arguably be stronger).
ASH Price at posting:
49.5¢ Sentiment: Buy Disclosure: Held
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