Stocks research house Fat Prophets changed its buy recommendation on Spark New Zealand to sell after news that chief executive Simon Moutter is stepping down.
News that Moutter will be replaced by Jolie Hodson "has come as a surprise and is strange timing-wise in our view, given the host of new management initiatives which still have time to run (Agile), or have only just been launched (Spark Sport)," said Greg Smith, head of research at Fat Prophets, which operates offices in London, Sydney and Auckland.
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According to Smith, the transformation under Moutter has been impressive. Although his replacement has held senior executive positions during the company's repositioning, "it does feel like the timing of the CEO transition is a year or so early."
Chair Justine Smyth announced Hodson's appointment from July 1 earlier today, saying the board's succession planning gave internal candidates the chance to shine over an extended period of time.