Street Talk

Salmat has potential for capital management

Sarah Thompson, Anthony Macdonald and Gretchen Friemann

Updated Jun 18, 2013 – 12.19pm, first published at 12.09pm

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Goldman Sachs has upgraded its rating on Salmat to “neutral" from “sell", suggesting the customer communications company could announce capital management initiatives at its investor briefing in July.

Goldman says Salmat has significant capacity to pay special dividends or undertake share buybacks, given its surplus cash of 44¢ a share and excess franking credits.