Morningstar have VOC on their 5 best stock selection list, with a fair value of $7.
Their reasoning includes:
* that the fiber business generates margins of greater than 40%
* the fiber generates 20-40% return on capital, depending upon the number of customers they contract to it
* the NBN impact for them will be muted, as only 20% of Vocus broadband customers are "on Net", and therefore directly impacted by the move to NBN
* with just 7% of the current fixed broadband market in Australia, their opportunity is to grow market share as NBN subscribers choose their provider.
As a result of these reasons, they see the gap between market value, and their intrinsic value closing over time (put another way - they expect the share price to rise).
p.s. Crazypunter - this is what analysis looks like.
- Forums
- ASX - By Stock
- VOC
- Serious Business..
Serious Business.., page-2
-
- There are more pages in this discussion • 158 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
NEWS
Antler Copper Project hits major permitting milestone – air quality permit advances to final review
CC9
Chariot Corporation (ASX:CC9) refines Black Mountain strategy, launching Pilot Mine to seize U.S. lithium opportunity