New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Briscoe Group (BGP) has been downgraded from NEUTRAL to UNDERPERFORM following a significant rally in its share price, driven by its inclusion in the NZ50.</li><li>The current valuation of BGP is unsustainable, as it trades at a high forward PE ratio, requiring earnings to increase significantly to justify this valuation.</li><li>Risks are skewed to the downside due to a challenging domestic consumer environment and potential competitive pressures from IKEA's upcoming entry into the market.</li></ul>

Briscoe Group (BGP) has been downgraded from NEUTRAL to UNDERPERFORM following a significant rally in its share price, driven by its inclusion in the NZ50.The current valuation of BGP is unsustainable, as it trades at a high forward PE ratio, requiring earnings to increase significantly to justify this valuation.Risks are skewed to the downside due to a challenging domestic consumer environment and potential competitive pressures from IKEA's upcoming entry into the market.

Briscoe Group Nothing on Sale; Down to UNDERPERFORM