morningstar rates bkn a buy

Bradken offers large market shares in mining and rail equipment. It’s low margin, capital intensive and cyclical, so it should be regarded as a higher-risk trading stock. It’s held up well through the downturn. Gearing remains high, but will improve via higher earnings, reduced capital investment and dividends this year. The company should benefit from increasing demand for resources amid a recovery in the US and Europe, while Chinese growth continues.

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