logo
Ord Minnett Keeps Their Buy Rating on Duratec Limited (DUR)

Ord Minnett Keeps Their Buy Rating on Duratec Limited (DUR)

Ord Minnett analyst John Lawlor, CFA maintained a Buy rating on Duratec Limited (DUR – Research Report) today and set a price target of A$1.60. The company's shares closed yesterday at A$1.45.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
According to TipRanks, Lawlor, CFA is a 2-star analyst with an average return of 0.1% and a 40.00% success rate.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Duratec Limited with a A$1.85 average price target, which is a 27.59% upside from current levels. In a report released yesterday, Shaw and Partners also maintained a Buy rating on the stock with a A$1.90 price target.
The company has a one-year high of A$1.78 and a one-year low of A$1.02. Currently, Duratec Limited has an average volume of 369.8K.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Costco's (COST) Membership Model Powers Ouperformance as Headwinds Persist
Costco's (COST) Membership Model Powers Ouperformance as Headwinds Persist

Yahoo

timean hour ago

  • Yahoo

Costco's (COST) Membership Model Powers Ouperformance as Headwinds Persist

Costco's (COST) fiscal Q3 2025 results show the retail giant remains largely insulated from broader economic pressures, thanks to the loyalty of its massive member base. Revenue grew 8% year-over-year, outpacing competitors such as Target (TGT) and Walmart (WMT), despite challenges including inflation and tariffs. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The key driver? It has 76.2 million paid members worldwide, delivering a consistent and reliable income. While the stock trades at a premium and macro headwinds persist across the retail sector, Costco's strong financial performance supports a continued bullish outlook. Last week, Costco surpassed earnings expectations, reporting $4.28 per share versus the anticipated $4.24. Along with an 8% rise in sales, net income jumped 13.1% year-over-year to $1.9 billion. This impressive net income growth is driven mainly by membership fees, which accounted for nearly two-thirds of Costco's net operating income. Importantly, this high-margin revenue stream allows Costco to operate with the profitability and stability often associated with software companies. The appeal of Costco memberships is clear, especially in times of higher inflation. By buying in bulk, members can theoretically save money, making the membership a valuable proposition. Even after raising membership fees in September 2024—for example, the 'Gold Star' membership increased from $60 to $65—renewal rates have stayed impressively above 90%. This recent price hike was the first in seven years and came at a sensitive time for consumers grappling with inflation, making those high renewal rates all the more remarkable. It shows members still see strong value despite the higher fees. For Costco, even a modest fee increase translates into hundreds of millions of dollars in additional annual operating income. Beyond the financials, memberships have a powerful psychological effect on shoppers. They encourage more frequent visits and foster customer loyalty, creating a flywheel effect where members pay for high-margin subscriptions while buying low-margin groceries in large volumes. Every business dreams of a recurring, predictable revenue stream—and for retailers like Costco, memberships are the perfect way to achieve it. Costco's resilience is nothing new. During the 2008–2009 financial crisis, while overall retail sales fell by 8%, warehouse clubs like Costco actually saw sales grow by 2%, with membership numbers holding steady. Fast forward to the COVID-19 pandemic, and Costco once again proved its strength, posting 16% revenue growth in fiscal 2021, largely driven by a surge in online sales. Its bulk-buying model became especially appealing as consumers rushed to stock up on essentials like toilet paper, underscoring how well Costco adapts to consumer behavior in times of economic stress. That's another thing about Costco. Retail just isn't the physical store anymore. It's digital, too. Costco's e-commerce segment is growing around 15%. Its mobile app is widely popular, and new technologies like 'scan-and-go' improve the shopping experience. Moreover, having your logo on millions of smartphones has other benefits like increased digital engagement, personalized recommendations, and dirt-cheap advertising. All of this helps explain why Costco (COST) trades at a premium valuation. With a Price-to-Earnings (P/E) ratio nearing 60—well above the sector median—the stock appears 'priced for perfection.' While such a valuation leaves little room for error, it's not unusual for high-quality companies to command premium multiples. If Costco continues to deliver strong performance, it could justify and even extend that valuation. However, there are risks. Tariffs and inflation remain headwinds, as highlighted by the $130 million LIFO charge in the recent quarter. These pressures could erode profitability and test investor confidence. Additionally, Costco faces stiff competition from other warehouse clubs like Sam's Club, which could impact growth and market share. In short, while Costco's fundamentals remain strong, its elevated valuation offers a limited margin of safety should conditions worsen. On Wall Street, Costco sports a consensus Moderate Buy rating based on 17 Buy, eight Hold, and zero Sell ratings in the past three months. COST's average price target of $1,093.64 implies a 4% upside potential over the next twelve months. Last week, Morgan Stanley analyst Simeon Gutman gave COST a Buy rating with a price target of $1,250. The analyst was impressed by Costco's member and sales growth. He also noted that 'Costco's ability to leverage its scale to counteract inflationary pressures and expand its market share against competitors is another key reason for the Buy rating. The company's business model, which focuses on consumable categories, provides a defensive advantage with limited tariff risk.' In summary, Costco's membership-driven model gives it a unique edge—especially during periods of economic uncertainty. Its recession-resistant qualities, combined with 8% sales growth, over 90% membership renewal rates despite recent price hikes, and rising net income, showcase strengths that traditional retailers struggle to match. These factors help justify Costco's premium valuation and sustained outperformance. That said, investors should tread with some caution. A lofty valuation means high expectations are already priced in, and any sign of a slowdown could rattle the market. But for now, Costco continues to fire on all cylinders, proving itself to be a dominant, resilient, and remarkably consistent retail force. Disclaimer & DisclosureReport an Issue

Musk's Political Exit Results In More Volatility for Tesla Stock — Experts Answer Whether You Should Buy the Dip
Musk's Political Exit Results In More Volatility for Tesla Stock — Experts Answer Whether You Should Buy the Dip

Yahoo

time2 hours ago

  • Yahoo

Musk's Political Exit Results In More Volatility for Tesla Stock — Experts Answer Whether You Should Buy the Dip

Elon Musk has taken a step back from politics, and some investors are excited about the tech billionaire's renewed focus on Tesla. Musk's entrepreneurial successes and ability to think ahead are one of the main reasons that Tesla stock commands a high premium. Learn More: Read Next: Some people see Musk's exit from politics as a good thing for the stock, while others still don't view it as a buying opportunity. The recent spat between Musk and Trump has created even more uncertainty for the stock, but fear can create opportunities. Several experts shared their thoughts about the electric vehicle (EV) maker. Elon Musk's involvement in the Department of Government Efficiency has stirred up controversy. Liberals make up a large percentage of EV buyers, and many people in this group adamantly turned against the tech billionaire. Robert P. Johnson, PhD, certified financial advisor (CFA), CAIA, professor of finance at Creighton University's Heider College of Business, views Musk's DOGE departure as good for business, but he has to clear a few hurdles. 'More attractive, but there are a couple of problems. First, Musk himself has seemingly always divided his time between several endeavors — Space X, X (formerly Twitter), Neuralink, etc. Second, his DOGE involvement also negatively impacted Tesla in the sense that he alienated a large part of his current and potential owner base by aligning himself with Trump,' Johnson explained. Find Out: While liberals have been turned off by Musk, he also risks losing conservatives due to a recent string of X posts. 'Now, his criticism of the 'Big, Beautiful Bill' may alienate potential buyers of Teslas who are supporters of Trump. In other words, Musk has seemingly alienated people on both sides of the political aisle,' Johnson added. 'Wading into politics is a losing proposition for the CEO of a publicly traded company, particularly one with as high a visibility as Musk.' Musk committing more of his time to Tesla isn't only a tailwind for its EVs. Tesla has been working on several projects, such as robotaxis and humanoid robots, that have the potential to deliver massive gains for patient investors. Alex Black, chief marketing officer at EpicVIN, encourages investors to consider all of Tesla's underlying businesses before making a decision. 'This is not an auto company — it's energy, software, AI, all in one. High potential, high volatility. Monitor margins, delivery numbers, and how they're competing against Chinese competition. And remember: Hype drives this stock more than rationale at times,' Black said. He also suggested considering where you are with your finances before making an investment. Your age plays a big role in the types of assets you should consider. 'Are you young and have time to take the ups and downs? Future tech in the form of EVs, AI and autonomy may be worth it,' according to Black. 'But if you're close to retirement, playing it safe with solid, proven companies is the better bet. Diversify a bit if possible.' Another problem for Tesla is the rising competition. BYD is a leading EV maker that is gobbling up market share in China, Europe and Mexico. Competition can present several problems for the valuation. John Ellmore, editor and spokesperson for Electric Car Guide, shares what investors should monitor. 'Investors need to look past the brand and dig into the numbers. Tesla's margins are tightening, sales are flatlining in key markets and the competition is delivering cheaper EVs at scale,' he pointed out. 'I think the market is catching up, so I would urge caution for would-be investors.' Musk's return to Tesla can minimize concerns about competition. The tech billionaire may have additional time to focus on Tesla and regain lost ground. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on Musk's Political Exit Results In More Volatility for Tesla Stock — Experts Answer Whether You Should Buy the Dip Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données

David Christian, CFA, CFP®
David Christian, CFA, CFP®

Business Journals

time2 hours ago

  • Business Journals

David Christian, CFA, CFP®

We are pleased to announce that David Christian, CFA, CFP®, has been named a shareholder at Johnson Investment Counsel. His leadership and dedication since joining in 2017 have played a key role in the firm's continued growth. He holds the Chartered Financial Analyst® (CFA®) designation and CERTIFIED FINANCIAL PLANNER™ (CFP®) certification. Johnson Investment Counsel serves clients in 50 states, with 6 offices across Ohio and Michigan.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store