Equities

CGC have announced a material investment in citrus properties and updated CY21e earnings guidance.

On June 16th the yield on 10-Year US Treasury Notes was higher at ~1.6% after the Federal Reserve signposted a rise in interest rates next year with two increases pencilled in by 2023.

The extraordinary iron ore price action we have continued to see through the June quarter has prompted us to further refine our financial performance forecasts for FMG as we head towards the end of FY21. Marking-to-market the iron ore price for the June 2021 quarter to date shows the average price now sits at ~US$184/dmt.

We upgraded our forecasts for Eagers following the Q1 trading update in mid April but have further reviewed our forecasts following an investor presentation released to the ASX in late April and another strong month for new vehicle sales in April which was released in early May.

A2M provided updated FY21e earnings guidance, which projected a slower recovery in 4Q21e than expected and the potential for this to drag into 1Q22e. In light of this we softened the trajectory of the rebound in A2M volumes impacting our SM1 assumptions.

Environmental, Social and Governance (ESG) issues are showing an increasing impact on Australian investors with the number of designated responsible ETFs surging 77.8% YoY as at 31st March 2021