3 stocks that gained traction on ASX –Macquarie Group, Telstra and iSentia

Macquarie Group Ltd

MQG Details
·         Better than expected full year results boosting the stock sentiment:Macquarie Group Ltd (ASX: MQG) stock enhanced over 3.23% on May 05, 2017 driven by their full year results ended at March 2017. The group reported a 2% rise in net operating income to $A10,364 million during the fiscal year of 2017 as compared to $A10,158 million in the prior corresponding period. Despite the lower net interest and trading income and fee and commission income; the rising net gains on sale of investments and businesses, and lower provisions for impairment managed the pressure. Accordingly, their net profit rose over 7.5% during the year to $A2,217 million against the prior corresponding period.

·         Recommendation:The fall in group’s net interest and trading income by 9% to A3,954 million from $A4,346 million in FY16 was at the back of decrease across most of the operating groups. MQG stock already rallied over 44.8% in the last one year (as of May 04, 2017) and has now touched its 52-week high. Given the scenario, we put an “Expensive” recommendation on this dividend yield stock at the current price of $ 94.89

 
Net profit division (Source: Company Reports) 

Telstra Corporation Ltd

TLS Details
·         ACCC’s draft decision on wholesale domestic mobile roaming service favored the stock: Telstra Corporation Ltd (ASX: TLS) stock rose over 4% on May 05, 2017 driven by the draft decision of the Australian Competition and Consumer Commission (ACCC) of not declaring a wholesale domestic mobile roaming service. ACCC reported that the effect on declaration as assessed might be unfavorable for regional, rural and remote areas and might hurt some consumers. Meanwhile, Telstra continued to expand their mobile network in regional, rural and remote areas, and forecasts up to $1 billion of investment flow to small towns and regional centers across the country over the next five years.

·         Recommendation:TLS stock is trading at a reasonable level and we give a “Buy” recommendation on the stock at the current price of $ 4.40

iSentia Group Ltd

ISD Details
·         Improving performance: iSentia Group Ltd (ASX: ISD) stock continued to rise over 4.8% on May 05, 2017 leading to a total increase of over 19% in the last five days alone. The group’s product releases are boosting client satisfaction and retention leading to a rising net ANZ client numbers in the third quarter of FY17 driven by positive response to new product release. The group’s third quarter client churn have returned to historic norms while the group witnessed a high retention of Platinum and Gold clients which are delivering high single digit ARPC growth on a year on year basis.

·         Recommendation: ISD stock lost over 51.3% in the last six months (as of May 04, 2017) and now trades reasonable levels. We are giving a “Speculative Buy” at the current price of $ 1.74
 

iSentia Group (Source: Company Reports)

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