Summary: February earnings season is under way, with a raft of newsletters updating their recommendations in response. FlexiGroup is seen as undervalued given the consumer financing company’s strategy appears to be working, while Echo Entertainment is capitalising on a resurgent performance from its casino The Star. REA Group looks fully valued after rising to near-record highs, JB Hi-Fi needs to maintain its recent pick-up in sales momentum and Navitas is still suffering from its loss of a key contract, the newsletters say.
Key take-out: An attractive yield of five per cent, predictable earnings and several potential growth avenues should propel FlexiGroup’s share price higher, say analysts.
Key beneficiaries: General investors. Category: Shares.