BUZZ-Australia's Kelsian shares rise as asset sale triggers Morningstar's cautious optimism
路透社2026/10/07 04:36Latest developments on October 7th – Kelsian Group (KLS.AX) shares briefly rose 1% to A$3.93 before narrowing gains to 0.3% by midday in Sydney. Morningstar holds a positive view on the transport operator’s recently announced A$150 million (US$104.76 million) sale of travel assets in mid-September. The investment research firm noted that this divestment relieves the transportation and travel operator from reliance on discretionary-spending businesses such as resorts, cruises, and tours. It also stated that the sale enables management to focus more on core operations and moderately reduces capital intensity. However, Morningstar pointed out that the sale means profits from the marine segment will still be "discretionary in nature." It added that the sale will leave the company’s earnings mainly dependent on its US interstate coach business, which is characterized by short-term contracts without cost-adjustment mechanisms and serves highly volatile sectors such as technology, oil, and gas. Year to date, the share price is down 8.2%. (US$1 = A$1.4318) (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Automated translation may be inaccurate or may not completely reflect the required context; Reuters does not guarantee the accuracy of translated texts, which are provided solely for reader convenience. Reuters is not responsible for any harm or loss arising from the use of automatic translation.)
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October 7 - ** Kelsian Group (KLS.AX) shares rose as much as 1% to 3.93 Australian dollars, but pared gains to a 0.3% increase by midday trading in Sydney
** Morningstar takes a positive view of the travel asset divestment deal valued at 150 million Australian dollars (104.76 million US dollars) announced by the transport operator in mid-September
** The investment research firm said the sale allows the transport and tourism operator to shed its discretionary spending-dependent resort, cruise, and tourism businesses
** It added that the divestment also enables management to focus more on core operations while moderately reducing capital intensity
** However, Morningstar pointed out that this sale means profits from the marine segment remain discretionary in nature
** It also noted that the sale means the company's earnings will mainly come from the US intercity coach business, which features shorter contract periods, lacks cost adjustment mechanisms, and serves highly volatile industries such as technology, oil, and gas
** Shares have fallen 8.2% so far this year
(1 US dollar = 1.4318 Australian dollars)
(To facilitate non-English speakers, Reuters has automatically translated its report into several other languages. Because automated translation may contain errors or lack necessary context, Reuters does not guarantee the accuracy of this translated text and provides it solely for the convenience of readers. Reuters assumes no responsibility for any damage or losses arising from the use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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