reports
Tower Limited: 1 director bought
A director at Tower Limited bought 95,644 shares at 0.737NZD and the significance rating of the trade was 56/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly ...
- David Ellis
Ceasing Coverage on Tower
We plan to cease coverage on no-moat-rated Tower in late October. We periodically adjust our coverage as necessary based on stock outlook, client demand, and investor interest. There is uncertainty surrounding the outcome of the appeals against the New Zealand Commerce Commission’s decision to block Suncorp Group’s proposed acquisition of Tower. Tower supports the appeal and has also lodged its own appeal. Our NZD 0.85 per share fair value estimate represents our assessment of Tower’s intr...
- David Ellis
Ceasing Coverage on Tower
We plan to cease coverage on no-moat-rated Tower in late October. We periodically adjust our coverage as necessary based on stock outlook, client demand, and investor interest. There is uncertainty surrounding the outcome of the appeals against the New Zealand Commerce Commission’s decision to block Suncorp Group’s proposed acquisition of Tower. Tower supports the appeal and has also lodged its own appeal. Our NZD 0.85 per share fair value estimate represents our assessment of Tower’s intr...
- Ravi Reddy
No Change to Tower’s NZD 0.85 Intrinsic FVE Following a Sound Tradin...
We maintain our NZD 0.85 per share fair value estimate for no-moat-rated Tower Limited following the second-half fiscal 2017 trading update. Overall premium growth and claims costs were broadly in line with our expectations. We have made a modest increase to our near-term underlying NPAT forecasts on slightly better-than-expected management expense performance. At current levels, Tower shares are fairly priced. Uncertainty remains surrounding the outcome of Suncorp Group’s appeal of the New Ze...
- Ravi Reddy
No Change to Tower’s NZD 0.85 Intrinsic FVE Following a Sound Tradin...
We maintain our NZD 0.85 per share fair value estimate for no-moat-rated Tower Limited following the second-half fiscal 2017 trading update. Overall premium growth and claims costs were broadly in line with our expectations. We have made a modest increase to our near-term underlying NPAT forecasts on slightly better-than-expected management expense performance. At current levels, Tower shares are fairly priced. Uncertainty remains surrounding the outcome of Suncorp Group’s appeal of the New Ze...
- Ravi Reddy
Appeals of Competition Regulator’s Decision Offer Some Hope for Towe...
Via its wholly owned subsidiary Vero Insurance New Zealand, Suncorp Group is appealing the New Zealand Commerce Commission’s decision to block its proposed acquisition of Tower. While this acquisition is a relatively small deal for Suncorp, it was very committed, having spent NZD 47 million in March 2017 to acquire a 19.99% stake in Tower at NZD 1.40 per share, so we are not completely surprised by the appeal. Tower also intends to file an appeal in the next few weeks. We maintain our NZD 0.85...
- Ravi Reddy
Appeals of Competition Regulator’s Decision Offer Some Hope for Towe...
Via its wholly owned subsidiary Vero Insurance New Zealand, Suncorp Group is appealing the New Zealand Commerce Commission’s decision to block its proposed acquisition of Tower. While this acquisition is a relatively small deal for Suncorp, it was very committed, having spent NZD 47 million in March 2017 to acquire a 19.99% stake in Tower at NZD 1.40 per share, so we are not completely surprised by the appeal. Tower also intends to file an appeal in the next few weeks. We maintain our NZD 0.85...
- Ravi Reddy
Reinstating our NZD 0.85 Intrinsic FVE for Tower After Competition Reg...
We bring our fair value estimate for no-moat and very high uncertainty-rated Tower Limited back to NZD 0.85 per share, our assessment of the insure's intrinsic value following the surprise rejection of Suncorp’s proposed takeover bid by the New Zealand competition regulator. Our previous fair value estimate of NZD 1.40 assumed Suncorp’s bid was successful. At current levels, Tower shares trade 12% above our intrinsic value. Our forecasts are unchanged and we continue to forecast no dividends...
- Ravi Reddy
Reinstating our NZD 0.85 Intrinsic FVE for Tower After Competition Reg...
We bring our fair value estimate for no-moat and very high uncertainty-rated Tower Limited back to NZD 0.85 per share, our assessment of the insure's intrinsic value following the surprise rejection of Suncorp’s proposed takeover bid by the New Zealand competition regulator. Our previous fair value estimate of NZD 1.40 assumed Suncorp’s bid was successful. At current levels, Tower shares trade 12% above our intrinsic value. Our forecasts are unchanged and we continue to forecast no dividends...
- Ravi Reddy
Placing Tower Under Review
We are placing no-moat Tower Limited under review to consider the implications of the rejection of Suncorp’s proposed takeover bid by the New Zealand competition regulator. Our fair value estimate is likely to fall as our NZD 1.40 per share fair value estimate assumed a successful bid by Suncorp. Without the bid, our intrinsic value for Tower was NZD 0.85 per share. We are surprised the New Zealand Commerce Commission blocked the bid as we estimated a combined Suncorp and Tower would have had ...
- Ravi Reddy
Placing Tower Under Review
We are placing no-moat Tower Limited under review to consider the implications of the rejection of Suncorp’s proposed takeover bid by the New Zealand competition regulator. Our fair value estimate is likely to fall as our NZD 1.40 per share fair value estimate assumed a successful bid by Suncorp. Without the bid, our intrinsic value for Tower was NZD 0.85 per share. We are surprised the New Zealand Commerce Commission blocked the bid as we estimated a combined Suncorp and Tower would have had ...
- Ravi Reddy
Suncorp Emerges with the Winning Bid for Tower; FVE raised to NZD 1.40
The board of Tower is supporting the higher takeover offer from Suncorp, via its wholly owned subsidiary Vero Insurance New Zealand, which has been raised to NZD 1.40 cash per share from NZD 1.30. In our view, Suncorp was already in the box seat having a 19.9% stake in Tower and higher offer than the NZD 1.17 offer from Fairfax Financial Holdings. With Fairfax Financial not intending to increase its offer, there are still some hurdles remaining including approvals from the Reserve Bank of New Ze...
- Ravi Reddy
Suncorp Emerges with the Winning Bid for Tower; FVE raised to NZD 1.40
The board of Tower is supporting the higher takeover offer from Suncorp, via its wholly owned subsidiary Vero Insurance New Zealand, which has been raised to NZD 1.40 cash per share from NZD 1.30. In our view, Suncorp was already in the box seat having a 19.9% stake in Tower and higher offer than the NZD 1.17 offer from Fairfax Financial Holdings. With Fairfax Financial not intending to increase its offer, there are still some hurdles remaining including approvals from the Reserve Bank of New Ze...
- Ravi Reddy
Legacy earthquake claims continue to weigh on earnings.
Legacy Canterbury earthquakes claims and other catastrophe events overshadow a sound underlying first-half fiscal 2017 result by no-moat Tower Limited. Underlying NPAT excluding these items was up 7.6% on the previous corresponding period to NZD 8.1 million and slightly better than expected. As expected, no dividend was declared. There were positive signs from the insurer’s strategic initiatives which include improving underwriting, building digital capability, rationalising products, simplify...
- Ravi Reddy
Legacy earthquake claims continue to weigh on earnings.
Legacy Canterbury earthquakes claims and other catastrophe events overshadow a sound underlying first-half fiscal 2017 result by no-moat Tower Limited. Underlying NPAT excluding these items was up 7.6% on the previous corresponding period to NZD 8.1 million and slightly better than expected. As expected, no dividend was declared. There were positive signs from the insurer’s strategic initiatives which include improving underwriting, building digital capability, rationalising products, simplify...
- Ravi Reddy
Catastrophes Overshadow Tower’s Sound Underlying 1H17 Result; FVE Un...
Legacy Canterbury earthquakes claims and other catastrophe events overshadow a sound underlying first-half fiscal 2017 result by no-moat Tower Limited. Underlying NPAT excluding these items was up 7.6% on the previous corresponding period to NZD 8.1 million and slightly better than expected. As expected, no dividend was declared. There were positive signs from the insurer’s strategic initiatives which include improving underwriting, building digital capability, rationalising products, simplify...
- Ravi Reddy
Catastrophes Overshadow Tower’s Sound Underlying 1H17 Result; FVE Un...
Legacy Canterbury earthquakes claims and other catastrophe events overshadow a sound underlying first-half fiscal 2017 result by no-moat Tower Limited. Underlying NPAT excluding these items was up 7.6% on the previous corresponding period to NZD 8.1 million and slightly better than expected. As expected, no dividend was declared. There were positive signs from the insurer’s strategic initiatives which include improving underwriting, building digital capability, rationalising products, simplify...
- Ravi Reddy
Legacy earthquake claims continue to weigh on earnings.
We transfer analyst coverage of Tower. Our NZD 1.30 per share fair value estimate is unchanged, as are our no-moat and very high uncertainty ratings. Tower is in play with two bidders emerging in February 2017, Canadian financial group Fairfax Financial and Suncorp Group. The board continues to assess the proposals, but from a shareholder's view, the NZD 1.30 per share cash offer from Suncorp is superior to Fairfax Financial's NZD 1.17 cash offer. To date, Fairfax Financial has not come back wit...
- Ravi Reddy
Transfer of Analyst Coverage; Tower’s FVE Unchanged
We transfer analyst coverage of Tower. Our NZD 1.30 per share fair value estimate is unchanged, as are our no-moat and very high uncertainty ratings. Tower is in play with two bidders emerging in February 2017, Canadian financial group Fairfax Financial and Suncorp Group. The board continues to assess the proposals, but from a shareholder's view, the NZD 1.30 per share cash offer from Suncorp is superior to Fairfax Financial's NZD 1.17 cash offer. To date, Fairfax Financial has not come back wit...
- Ravi Reddy
Transfer of Analyst Coverage; Tower’s FVE Unchanged
We transfer analyst coverage of Tower. Our NZD 1.30 per share fair value estimate is unchanged, as are our no-moat and very high uncertainty ratings. Tower is in play with two bidders emerging in February 2017, Canadian financial group Fairfax Financial and Suncorp Group. The board continues to assess the proposals, but from a shareholder's view, the NZD 1.30 per share cash offer from Suncorp is superior to Fairfax Financial's NZD 1.17 cash offer. To date, Fairfax Financial has not come back wit...
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