We expect API to achieve strong earnings growth in FY07 following a period of restructuring and consolidation. In our view this outlook is not reflected in the current share price, with the stock trading on a low forward PE multiple and high, fully franked dividend yield. The key medium term risk to our forecasts is a major retail slowdown, which we see as unlikely. We view the current negative sentiment towards API as excessive and believe the stock currently represents very good value
API Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
