Maxitrans profit jumps 111pc
Maxitrans has a strong balance sheet with substantial headroom for acquisitions. Management’s reference to the possibility of “further incremental investment initiatives” is just another way of saying acquisitions aren’t out of the question, and given its strong track record in efficiently integrating new businesses, this may prove to be an important factor in 2013-14.
There was a mixed reaction to Maxitrans Industries ’ 2012-13 result that featured profit of $26 million, 111 per cent ahead of the previous corresponding period and above the expectations of analysts at Canaccord who were forecasting $24.4 million.
Despite this strong performance, however, the broker downgraded its recommendation from “buy" to “hold" and reduced its 12-month price target from $1.60 a share to $1.50.
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