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Yahoo
06-07-2025
- Business
- Yahoo
'Get on with it': next move key with rate cut baked in
As the Reserve Bank's July cash-rate meeting gets under way, traders will be just as interested in the tone of the board's decision as they will be in its substance. A consensus of economists and bond traders predict the central bank board will deliver its first back-to-back interest rate cut in more than five years when its meeting wraps up on Tuesday. Inflation seems to be under control and the ongoing uncertainty of tariffs is adding to soft consumer spending, tipping the scales in favour of the RBA looking to provide more stimulus. The rates market is almost fully pricing in a 25 basis point cut. While the central bank could still decide to shock the market, past experience suggests the board tends not to move counter to such a strongly held opinion. Westpac chief economist Luci Ellis said a cut was no "shoo-in", but the board would have no clear rationale to hold until August as even a hotter-than-expected June inflation outcome would be unlikely to change the equation. "A decision to cut in July is one of timing and tactics, not whether to cut at all," said the former Reserve Bank economist. "If the question is now or in five weeks' time, the juice is not worth the squeeze. Just get on with it." Economists are much less unified in their expectations for August. The markets have priced in a better-than-even chance the board will go back-to-back-to-back, but Ms Ellis doesn't expect the next cut after July to come until November. ANZ, NAB and CBA all believe the central bank will cut again in August, as does AMP chief economist Shane Oliver, who expects governor Michele Bullock to fuel market hopes with more dovish commentary post-meeting. But JP Morgan economists Ben Jarman and Jack Stinson think slightly more hawkish messaging could correct some overconfidence in the market, which would push assets lower. "Assuming a cut next week, in the inevitable press conference question about what's to come in August, we expect the governor to acknowledge a third consecutive move is possible, but list a swathe of criteria that will be relevant," they said. "Such an open-ended response would implicitly push back a bit on the August pricing."
Yahoo
03-07-2025
- Business
- Yahoo
3 European Stocks That May Be Undervalued In July 2025
As the European markets show signs of resilience, with the STOXX Europe 600 Index climbing 1.32% amid easing geopolitical tensions and promises of economic stimulus, investors are keenly assessing opportunities in the region. Identifying undervalued stocks can be particularly appealing in such an environment, as these equities may offer potential for growth when market conditions stabilize further. Name Current Price Fair Value (Est) Discount (Est) Zaptec (OB:ZAP) NOK22.50 NOK44.90 49.9% Qt Group Oyj (HLSE:QTCOM) €57.55 €113.35 49.2% Laboratorios Farmaceuticos Rovi (BME:ROVI) €55.75 €110.26 49.4% Ion Beam Applications (ENXTBR:IBAB) €11.66 €22.99 49.3% innoscripta (XTRA:1INN) €99.30 €196.58 49.5% Honkarakenne Oyj (HLSE:HONBS) €2.70 €5.37 49.7% Green Oleo (BIT:GRN) €0.795 €1.57 49.2% Cavotec (OM:CCC) SEK17.00 SEK33.97 49.9% Archicom (WSE:ARH) PLN43.00 PLN84.73 49.2% ABO Energy GmbH KGaA (XTRA:AB9) €38.40 €76.54 49.8% Click here to see the full list of 180 stocks from our Undervalued European Stocks Based On Cash Flows screener. Underneath we present a selection of stocks filtered out by our screen. Overview: Laboratorios Farmaceuticos Rovi, S.A. is a pharmaceutical company that manufactures, sells, and markets its products across Spain, the European Union, OECD countries, and internationally with a market cap of €2.85 billion. Operations: Laboratorios Farmaceuticos Rovi generates revenue through the manufacturing, selling, and marketing of pharmaceutical products across Spain, the European Union, OECD countries, and internationally. Estimated Discount To Fair Value: 49.4% Laboratorios Farmaceuticos Rovi is trading at €55.75, significantly below its estimated fair value of €110.26, indicating it may be undervalued based on cash flows. Analysts agree the stock price could rise by 41.8%. With earnings forecast to grow 16.5% annually—outpacing the Spanish market's 5.5%—and revenue projected to increase at 8.2%, Rovi's financial outlook remains robust despite slower-than-significant growth expectations in both earnings and revenue metrics. Insights from our recent growth report point to a promising forecast for Laboratorios Farmaceuticos Rovi's business outlook. Click here and access our complete balance sheet health report to understand the dynamics of Laboratorios Farmaceuticos Rovi. Overview: Neste Oyj, with a market cap of €9.22 billion, operates in the production and distribution of renewable diesel and sustainable aviation fuel across Finland, other Nordic countries, the Baltic Rim, Europe, the United States, and internationally. Operations: The company's revenue segments include Oil Products (€12.10 billion), Renewable Products (€7.30 billion), and Marketing & Services (€4.51 billion). Estimated Discount To Fair Value: 19.6% Neste Oyj is trading at €12, below its estimated fair value of €14.92, reflecting a modest undervaluation based on discounted cash flow analysis. Despite recent volatility and high debt levels, the company is expected to achieve profitability within three years with earnings projected to grow significantly annually. Recent developments in renewable fuel technology with Chevron Lummus Global highlight potential future revenue streams, although recent index exclusion may impact investor sentiment. According our earnings growth report, there's an indication that Neste Oyj might be ready to expand. Click here to discover the nuances of Neste Oyj with our detailed financial health report. Overview: Andritz AG is a global provider of industrial machinery, equipment, and services across various continents including Europe, North America, South America, China, Asia, Africa, and Australia with a market cap of €5.99 billion. Operations: The company generates revenue from four main segments: Metals (€1.78 billion), Hydro Power (€1.61 billion), Pulp & Paper (€3.27 billion), and Environment & Energy (€1.52 billion). Estimated Discount To Fair Value: 48.3% Andritz AG, trading at €61.5, is significantly undervalued with an estimated fair value of €118.95 based on discounted cash flow analysis. Despite a decline in first-quarter sales and net income compared to the previous year, earnings are projected to grow 11.47% annually, outpacing the Austrian market's growth rate. However, its dividend yield of 4.23% is not fully supported by free cash flows, indicating potential sustainability concerns despite strong relative value against industry peers. Our comprehensive growth report raises the possibility that Andritz is poised for substantial financial growth. Unlock comprehensive insights into our analysis of Andritz stock in this financial health report. Investigate our full lineup of 180 Undervalued European Stocks Based On Cash Flows right here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BME:ROVI HLSE:NESTE and WBAG:ANDR. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
3 European Stocks That May Be Undervalued In July 2025
As the European markets show signs of resilience, with the STOXX Europe 600 Index climbing 1.32% amid easing geopolitical tensions and promises of economic stimulus, investors are keenly assessing opportunities in the region. Identifying undervalued stocks can be particularly appealing in such an environment, as these equities may offer potential for growth when market conditions stabilize further. Name Current Price Fair Value (Est) Discount (Est) Zaptec (OB:ZAP) NOK22.50 NOK44.90 49.9% Qt Group Oyj (HLSE:QTCOM) €57.55 €113.35 49.2% Laboratorios Farmaceuticos Rovi (BME:ROVI) €55.75 €110.26 49.4% Ion Beam Applications (ENXTBR:IBAB) €11.66 €22.99 49.3% innoscripta (XTRA:1INN) €99.30 €196.58 49.5% Honkarakenne Oyj (HLSE:HONBS) €2.70 €5.37 49.7% Green Oleo (BIT:GRN) €0.795 €1.57 49.2% Cavotec (OM:CCC) SEK17.00 SEK33.97 49.9% Archicom (WSE:ARH) PLN43.00 PLN84.73 49.2% ABO Energy GmbH KGaA (XTRA:AB9) €38.40 €76.54 49.8% Click here to see the full list of 180 stocks from our Undervalued European Stocks Based On Cash Flows screener. Underneath we present a selection of stocks filtered out by our screen. Overview: Laboratorios Farmaceuticos Rovi, S.A. is a pharmaceutical company that manufactures, sells, and markets its products across Spain, the European Union, OECD countries, and internationally with a market cap of €2.85 billion. Operations: Laboratorios Farmaceuticos Rovi generates revenue through the manufacturing, selling, and marketing of pharmaceutical products across Spain, the European Union, OECD countries, and internationally. Estimated Discount To Fair Value: 49.4% Laboratorios Farmaceuticos Rovi is trading at €55.75, significantly below its estimated fair value of €110.26, indicating it may be undervalued based on cash flows. Analysts agree the stock price could rise by 41.8%. With earnings forecast to grow 16.5% annually—outpacing the Spanish market's 5.5%—and revenue projected to increase at 8.2%, Rovi's financial outlook remains robust despite slower-than-significant growth expectations in both earnings and revenue metrics. Insights from our recent growth report point to a promising forecast for Laboratorios Farmaceuticos Rovi's business outlook. Click here and access our complete balance sheet health report to understand the dynamics of Laboratorios Farmaceuticos Rovi. Overview: Neste Oyj, with a market cap of €9.22 billion, operates in the production and distribution of renewable diesel and sustainable aviation fuel across Finland, other Nordic countries, the Baltic Rim, Europe, the United States, and internationally. Operations: The company's revenue segments include Oil Products (€12.10 billion), Renewable Products (€7.30 billion), and Marketing & Services (€4.51 billion). Estimated Discount To Fair Value: 19.6% Neste Oyj is trading at €12, below its estimated fair value of €14.92, reflecting a modest undervaluation based on discounted cash flow analysis. Despite recent volatility and high debt levels, the company is expected to achieve profitability within three years with earnings projected to grow significantly annually. Recent developments in renewable fuel technology with Chevron Lummus Global highlight potential future revenue streams, although recent index exclusion may impact investor sentiment. According our earnings growth report, there's an indication that Neste Oyj might be ready to expand. Click here to discover the nuances of Neste Oyj with our detailed financial health report. Overview: Andritz AG is a global provider of industrial machinery, equipment, and services across various continents including Europe, North America, South America, China, Asia, Africa, and Australia with a market cap of €5.99 billion. Operations: The company generates revenue from four main segments: Metals (€1.78 billion), Hydro Power (€1.61 billion), Pulp & Paper (€3.27 billion), and Environment & Energy (€1.52 billion). Estimated Discount To Fair Value: 48.3% Andritz AG, trading at €61.5, is significantly undervalued with an estimated fair value of €118.95 based on discounted cash flow analysis. Despite a decline in first-quarter sales and net income compared to the previous year, earnings are projected to grow 11.47% annually, outpacing the Austrian market's growth rate. However, its dividend yield of 4.23% is not fully supported by free cash flows, indicating potential sustainability concerns despite strong relative value against industry peers. Our comprehensive growth report raises the possibility that Andritz is poised for substantial financial growth. Unlock comprehensive insights into our analysis of Andritz stock in this financial health report. Investigate our full lineup of 180 Undervalued European Stocks Based On Cash Flows right here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BME:ROVI HLSE:NESTE and WBAG:ANDR. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Connectez-vous pour accéder à votre portefeuille
CNA
12-06-2025
- Business
- CNA
Bank of Korea chief says excessive rate cuts could cause price upswing in property markets
SEOUL :South Korea's central bank governor said on Thursday "excessive" policy interest rate cuts could cause another round of price upswings in the property market and increase volatility in currency markets, although the domestic economy remains sluggish. "If we rely too much on economic stimulus policies out of urgency, there may be greater side effects later on. For example, if we cut the base interest rate excessively, there is a high risk that it will lead to a rise in real estate prices," Governor Rhee Chang-yong said in a speech prepared for the bank's 75th anniversary. His comments come after the bank flagged more rate cuts to come on the day it trimmed borrowing costs by a quarter percentage point to 2.5 per cent on May 29, to reflect the impact of the U.S. trade tariffs and tepid domestic consumption. The widely expected rate cut, the fourth in the current easing cycle, came as the newly elected President Lee Jae-myung geared up for major stimulus measures including this year's second extra budget to boost growth. Rhee's concerns about excessively cutting interest rates also stemmed from recent currency market volatility. "The gap between domestic and foreign interest rates may widen further as the U.S. Federal Reserve adjusts the pace of its interest rate cuts, and uncertainty surrounding the results of trade negotiations with major countries may increase, leading to increased volatility in the foreign exchange market," Rhee said in the speech.
Reuters
12-06-2025
- Business
- Reuters
Bank of Korea chief says excessive rate cuts could cause price upswing in property markets
SEOUL, June 12 (Reuters) - South Korea's central bank governor said on Thursday "excessive" policy interest rate cuts could cause another round of price upswings in the property market and increase volatility in currency markets, although the domestic economy remains sluggish. "If we rely too much on economic stimulus policies out of urgency, there may be greater side effects later on. For example, if we cut the base interest rate excessively, there is a high risk that it will lead to a rise in real estate prices," Governor Rhee Chang-yong said in a speech prepared for the bank's 75th anniversary. His comments come after the bank flagged more rate cuts to come on the day it trimmed borrowing costs by a quarter percentage point to 2.5% on May 29, to reflect the impact of the U.S. trade tariffs and tepid domestic consumption. The widely expected rate cut, the fourth in the current easing cycle, came as the newly elected President Lee Jae-myung geared up for major stimulus measures including this year's second extra budget to boost growth. Rhee's concerns about excessively cutting interest rates also stemmed from recent currency market volatility. "The gap between domestic and foreign interest rates may widen further as the U.S. Federal Reserve adjusts the pace of its interest rate cuts, and uncertainty surrounding the results of trade negotiations with major countries may increase, leading to increased volatility in the foreign exchange market," Rhee said in the speech.
