Investors could be in for a string of share buybacks from the likes of Telstra Corporation,Seven West Media and CSL, with Credit Suisse arguing improving cashflows and “the lowest cost of debt in a generation” have companies primed to give back to shareholders.
- Telstra, which is widely expected to launch a $2 billion buyback when it reports its full-year earnings.
- Seven West could launch a buyback at current prices,
- Salary packaging firm McMillan Shakespeare is a prime candidate if its share price remains depressed.
- Engineering group Downer EDI could also do a buyback, although Credit Suisse noted the company preferred acquisitions.
- Automotive Holdings Group, which owns around 100 car dealerships in the country, was another candidate at its current low valuation.
- CSL to launch another buyback during earnings season.
- generate much more free cash – a favourite metric for many investors
- signal that managements are attempting to beat their cost of capital.