New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>After a decade of share price underperformance versus the New Zealand market, NZX is approaching an inflection point.</li><li>We forecast EPS to trough in FY23 and annual growth to average in the low double digits over the coming decade, led by the unlocking of operating leverage in Smartshares as it achieves scale, and supported by a rebound in local market activity.</li><li>We are more cautious on the path for Wealth Technologies and await evidence of execution before ascribing any value. </li></ul>

After a decade of share price underperformance versus the New Zealand market, NZX is approaching an inflection point.We forecast EPS to trough in FY23 and annual growth to average in the low double digits over the coming decade, led by the unlocking of operating leverage in Smartshares as it achieves scale, and supported by a rebound in local market activity.We are more cautious on the path for Wealth Technologies and await evidence of execution before ascribing any value. 

<ul><li>NZX continues to perform admirably in the face of a soggy market backdrop, with the diverse nature of its revenue streams again showing its value during 1H23.</li><li>While the result reflected the soft operating metrics, the company is positioning itself well for an eventual return to a more normal market environment.</li><li>We view the next 18 months as an important and potentially catalyst rich period for NZX as it works to realise synergies from the two recent Smartshares acquisitions, and deliver on ambitious targets in the Wealth Technologies division. </li></ul>

NZX continues to perform admirably in the face of a soggy market backdrop, with the diverse nature of its revenue streams again showing its value during 1H23.While the result reflected the soft operating metrics, the company is positioning itself well for an eventual return to a more normal market environment.We view the next 18 months as an important and potentially catalyst rich period for NZX as it works to realise synergies from the two recent Smartshares acquisitions, and deliver on ambitious targets in the Wealth Technologies division. 

Nzx -1H23 Result — The Wealth Effect Is Key

<ul><li>Robust performance against difficult macro backdrop</li><li>FY23 operating targets assume stronger markets in 2023 and would deliver earnings towards the top of the guidance range</li><li>Value lies in successful execution of Wealth Tech and funds management business</li></ul>

Robust performance against difficult macro backdropFY23 operating targets assume stronger markets in 2023 and would deliver earnings towards the top of the guidance rangeValue lies in successful execution of Wealth Tech and funds management business

NZX: Avoiding Going Backwards Despite Headwinds

<ul><li>NZX’s investor day reiterated the growing importance of funds under management (FUM) and under administration (FUA), coming a day after its QuayStreet (QS) acquisition announcement</li><li>Expected growth in FUM and FUA is the main source of earnings growth for NZX for the foreseeable future</li><li>Whilst in the near-term there are some operating cost headwinds and FUA onboarding continues to take longer than expected</li></ul>

NZX’s investor day reiterated the growing importance of funds under management (FUM) and under administration (FUA), coming a day after its QuayStreet (QS) acquisition announcementExpected growth in FUM and FUA is the main source of earnings growth for NZX for the foreseeable futureWhilst in the near-term there are some operating cost headwinds and FUA onboarding continues to take longer than expected

<ul><li>Core divisons offer downside protection while Funds Management and Wealth Technologies present avenue to grow</li><li>1H22 result evidence of the diversity of revenue streams</li><li>2H22 begins well with strong equity market recovery in July 2022</li></ul>

Core divisons offer downside protection while Funds Management and Wealth Technologies present avenue to grow1H22 result evidence of the diversity of revenue streams2H22 begins well with strong equity market recovery in July 2022

NZX: A Wealth of Opportunities — Upgrade to O/P

New Zealand

NZX Ltd. operates the New Zealand Stock Exchange, the country's primary national stock exchange.  NZX provides markets that facilitate the raising of capital and the trading of corporate securities and operates markets for equities, corporate and government bonds, fixed income securities and alternative equity investments.

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NZX (NZX NZ)

Nzx -Staying the Course at the Bourse

We forecast EPS to trough in FY23 and annual growth to average in the low double digits over the coming decade, led by the unlocking of operating...

Forsyth Barr

Nzx -1H23 Result — The Wealth Effect Is Key

NZX continues to perform admirably in the face of a soggy market backdrop, with the diverse nature of its revenue streams again showing its value...

Forsyth Barr

NZX: Avoiding Going Backwards Despite Headwinds

NZX reported a robust FY22 result against a soft market backdrop that showcased the defensive nature of its diverse revenue streams (EBITDA...

Forsyth Barr

NZX: Focussing on the FUM-Damentals

NZX’s investor day reiterated the growing importance of funds under management (FUM) and under administration (FUA), coming a day after...

Forsyth Barr

NZX: A Wealth of Opportunities — Upgrade to O/P

We upgrade NZX to OUTPERFORM as a result of 1) increased confidence on timing and scale of Wealth Technology onboarding, 2) our revised valuation...

Forsyth Barr

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