In today’s briefing:
- Relative Value in Australian Banks: ANZ/Westpac Overbought; Macquarie/Bendigo to Catch Up
- Horizon Minerals Ltd – Value Creation Through Divestment
Relative Value in Australian Banks: ANZ/Westpac Overbought; Macquarie/Bendigo to Catch Up
- Australian banks’ November earnings triggered sharp and divergent share-price reactions, widening performance dispersion across the sector.
- Based on the most recent moves, ANZ (ANZ AU) and Westpac (WBC AU) appear overvalued versus peers and potentially overbought, while two other banks screen as comparatively oversold.
- Statistical analysis identifies sixteen actionable opportunities for quantitative traders targeting mean reversion plays within the sector.
Horizon Minerals Ltd – Value Creation Through Divestment
- Horizon Minerals Limited (ASX:HRZ) is an emerging junior gold producer with 1.8moz of gold resources located around the Kalgoorlie and Coolgardie regions of Western Australia.
- HRZ has announced a deal to sell the Lake Johnston Project for a total consideration of $35m to Forrestania Resources Ltd (ASX:FRS) which is expected to complete in January 2026.
- The deal is accretive to HRZ given we had nil value ascribed to the project whilst the consideration is greater than what HRZ paid (~$30m) to acquire Poseidon Nickel (ASX:POS), predominately for Black Swan.
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