The market had confidence in Mainfreight following its performance during the global financial crisis, when it managed to grow revenue and market share and outperform its peers, he said.
"Mainfreight demonstrated to me, as an analyst - out of all the companies I covered [during the GFC] - that they had really good intelligence within their organisation as to where the pressure points were and what was needed. And that's continued, right to today."
Mainfreight shares are trading at a 15 per cent discount to Forsyth Barr's $11.50 valuation on the stock.
TRAILBLAZER
Goldman Sach's analyst Buffy Gill has come out in support of outdoor clothing retailer Kathmandu's "brand refresh" initiative, which includes a new logo, upgraded store layouts and redesigned products. The company's marketing initiatives gave it an advantage over its competitors, she said in a research note this week. Gill said Kathmandu's marketing spend represented 5 to 6 per cent of revenue, which was "well above that of a typical Australasian apparel retailer".
Goldman Sachs has a $3.05 12 month target price on the stock, which closed up 6c at $2.06 last night.
HOLDING COURSE
Analysts have held firm following Rakon's shock announcement last week, when the technology exporter laid bare just how badly the strong New Zealand dollar was affecting its bottom line.
The Mt Wellington-based crystal oscillators manufacturer said it would lose about $20 million in cash earnings this financial year because of the dollar's ongoing strength against the British and United States currencies.
But despite the bad news, the five analysts listed by Bloomberg as covering Rakon have not changed their recommendations on its stock. Managing director Brent Robinson said if the New Zealand dollar remained at its current levels, earnings before interest, tax, depreciation and amortisation (ebitda) for the year to March 2012 would be in the range of $14 million to $18 million.
That would be a reduction of up to 43 per cent on last year's $24.8 million ebitda.
Shares closed down 1c at 74c last night.
BROKERS' PICKS
Analysts at Forsyth Barr were excused from getting bogged down in forward earnings projections and discounted cashflow calculations for their most recent piece of major research - calculating the probability of the All Blacks winning the World Cup.
The project, in the name of producing a glossy guide for clients, turned out to be one of the most commented on publications for a while, head of research Rob Mercer says.
Unsurprisingly, while data stretching back 30 years points to the All Blacks being more than twice as likely to win than nearest rival Australia, it is the firm's World XV that has stimulated much feedback, he says.
Only four All Blacks make the cut - Tony Woodcock, Richie McCaw, Dan Carter and Ma'a Nonu - among an equal number of Springboks, three Wallabies and a scattering of Six Nations players. No English players make the grade.
It's uncertain what role one of the firm's directors David Kirk had in the selections but he is one of the few All Blacks who knows a thing or two about winning World Cups.
