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MIDCAP-Kathmandu Holdings leads Aussie consumer discretionary on analyst revisions

Tuesday, 9 Oct 2012 | 1:27 AM ET

Australia-listed Kathmandu Holdings Ltd leads on analyst revisions among 55 companies in the country's consumer discretionary sector tracked by at least three analysts, data from Thomson Reuters StarMine shows.

The New Zealand-based outdoor clothing and equipment retailer has an Analyst Revision Model (ARM) score of 99, the highest in the sector. This score has increased over 50 points since the company reported results in mid-September.

Analysts have raised average EPS estimate for the year ending July 2013 by 9 percent since Sept. 21.

The retailer has a score of 88 in the SmartHoldings Model, suggesting a potential increase in institutional ownership.

The stock is trading at a forward 12-month P/E ratio of 9.3 against the peer average of 13.

Of the eight analysts tracking the stock, four give it a 'strong buy' or 'buy' rating, three recommend a 'hold' while one recommends a 'strong sell'.

The shares of the company have risen 6.2 percent over the last month, while the broader index gained 3.52 percent in the same period, as of Monday's close.

Fairfax Media lags the sector with an ARM score of 8. CONTEXT:

For the year ended July 2012 the company's sales rose 13 percent to NZ$347.1 million from a year earlier. However, net income fell 11 percent to NZ$34.8 million.

StarMine's Analyst Revision Model ranks stocks based on analysts' revision of earnings and revenue estimates and changes in their ratings and usually gives additional weight to analysts who have been more accurate in the past.

The StarMine SmartHoldings model is a global stock selection model that ranks stocks based on the expected future increase, or decrease, in institutional ownership.

(Reporting By Tripti Kalro; Editing by Sunil Nair)

((Tripti.Kalro@thomsonreuters.com))

Keywords: MIDCAP KATHMANDUHOLDINGS/