Japan stocks lower at close of trade; Nikkei 225 down 0.41%

Investing.com – Australia stocks were lower after the close on Tuesday, as losses in the Energy, A-REITs and Healthcare sectors led shares lower.

At the close in Sydney, the S&P/ASX 200 declined 0.52%.

The best performers of the session on the S&P/ASX 200 were Vault Minerals Ltd (ASX:VAU), which rose 5.00% or 0.03 points to trade at 0.63 at the close. Meanwhile, Capstone Copper Corp DRC (ASX:CSC) added 3.70% or 0.40 points to end at 11.21 and Megaport Ltd (ASX:MP1) was up 3.19% or 0.45 points to 14.55 in late trade.

The worst performers of the session were IperionX Limited (ASX:IPX), which fell 9.96% or 0.74 points to trade at 6.69 at the close. Spark New Zealand Ltd (ASX:SPK) declined 4.27% or 0.10 points to end at 2.24 and BSP Financial Group Ltd (ASX:BFL) was down 4.55% or 0.38 points to 7.97.

Falling stocks outnumbered advancing ones on the Sydney Stock Exchange by 673 to 484 and 416 ended unchanged.

Shares in Vault Minerals Ltd (ASX:VAU) rose to 5-year highs; rising 5.00% or 0.03 to 0.63.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was unchanged 0.02% to 10.92.

Gold Futures for December delivery was up 0.08% or 2.92 to $3,680.32 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in October rose 0.80% or 0.50 to hit $62.76 a barrel, while the November Brent oil contract rose 0.79% or 0.52 to trade at $66.54 a barrel.

AUD/USD was unchanged 0.29% to 0.66, while AUD/JPY fell 0.21% to 97.15.

The US Dollar Index Futures was down 0.10% at 97.32.

Investing.com -- Barclays has initiated coverage on Rosebank Industries Plc at “overweight,” setting a sum-of-the-parts price target of 430p, in a note dated Tuesday. 

The call represents a 31% upside to the September 8 closing price of 328p and a 43% premium to the company’s placing price.

Rosebank, established in 2024, applies a “Buy, Improve, Sell” model to underperforming industrial and manufacturing companies. 

Its debut acquisition, Electrical Components International (ECI), closed on August 20 for an enterprise value of $1.894 billion, equal to 9.8x 2024 adjusted EBITDA and 9x 2025 estimates.

Barclays noted that the multiple sits below the three-year average of 13x for global industrial deals.

Barclays analysts said the ECI purchase offers “plenty of scope for improvement with an inefficient manufacturing footprint, low profitability per employee vs. other industrial companies and, at this juncture, a less than optimal divisional profit mix.” 

Management aims to lift ECI’s EBITA margin by at least 500 basis points, from 13% in 2024 to 18% within three to five years. 

Barclays projects a sharper rise, forecasting margins of 20% by 2028, a 700bp improvement.

The acquisition is expected to deliver significant shareholder returns. Barclays estimates a 2.4x return on equity invested by fiscal 2028, consistent with Rosebank’s track record. 

The brokerage flagged that at Melrose, the management team achieved an average 27% internal rate of return across businesses sold.

ECI’s financial position is also expected to improve. Under prior owner Cerberus, leverage was around 5x and interest costs absorbed about 11% of debt, resulting in negative net income from 2022 through 2024. 

Under Rosebank, Barclays forecasts leverage falling to 2.7x in 2026 and 1.6x in 2028, with interest expense declining to $45 million from $110 million. 

Earnings are forecast to grow at a compound rate of 22% between 2026 and 2028. The company’s shares closed at 328p on September 8, giving it a market capitalization of £1.33 billion. 

It has 406.61 million shares outstanding and a free float of 96.2%. The stock has traded in a 52-week range of GBP 9.07 to 3.13. 

Dividend yield is currently not applicable, with payouts expected to begin from fiscal 2026.

Rosebank has indicated it plans to pursue additional acquisitions within 12 months. “We expect Rosebank to undertake a second acquisition with management stating that they ‘plan to do another acquisition within 12 months,’” Barclays said, adding that the company has capacity to operate the model across multiple assets.

Barclays added that Rosebank’s valuation reflects strong upside potential. “Our SOTP valuation for Rosebank is 430p, representing +43% upside to the placing price and +31% upside to the current price,” the analysts said.

Investing.com – Taiwan stocks were higher after the close on Tuesday, as gains in the Electronic Parts/Components, Electronics and Computers & Peripherals sectors led shares higher.

At the close in Taiwan, the Taiwan Weighted added 0.22% to hit a new all time high.

The best performers of the session on the Taiwan Weighted were Taiwan Pelican Express Co Ltd (TW:2642), which rose 10.00% or 2.65 points to trade at 29.15 at the close. Meanwhile, Winbond Electronics Corp (TW:2344) added 10.00% or 2.05 points to end at 22.55 and Nanya Technology Corp (TW:2408) was up 9.96% or 4.80 points to 53.00 in late trade.

The worst performers of the session were Jean Co Ltd (TW:2442), which fell 7.33% or 2.20 points to trade at 27.80 at the close. AzureWave Technologies Inc (TW:3694) declined 6.11% or 5.50 points to end at 84.50 and Avision Inc (TW:2380) was down 5.65% or 0.38 points to 6.35.

Falling stocks outnumbered advancing ones on the Taiwan Stock Exchange by 0 to 0.

Shares in Winbond Electronics Corp (TW:2344) rose to 52-week highs; rising 10.00% or 2.05 to 22.55.

Crude oil for October delivery was up 0.63% or 0.39 to $62.65 a barrel. Elsewhere in commodities trading, Brent oil for delivery in November rose 0.62% or 0.41 to hit $66.43 a barrel, while the December Gold Futures contract rose 0.48% or 17.72 to trade at $3,695.12 a troy ounce.

USD/TWD was down 0.08% to 30.34, while TWD/CNY unchanged 0.04% to 0.23.

The US Dollar Index Futures was down 0.18% at 97.24.

Investing.com-- Monday .com (NASDAQ:MNDY) has been excessively punished since its second-quarter results and now offers compelling value among high-growth software stocks, Jefferies analysts said in a note, reiterating the firm as a top pick.

The project-management software provider’s shares have dropped 23% since Q2 earnings, sliding 30% on the day of the report after the company raised its full-year revenue forecast by just $3-4 million, far less than historical increases.

Concerns about lower lead volumes due to Google search algorithm changes also weighed. With the stock down 19% year-to-date and trading 44% below its 52-week high, Jefferies said the magnitude of the selloff looks excessive.

The brokerage highlighted that Monday.com now trades at 5.6 times forward enterprise value to sales, 36% below its three-year average and among the cheapest in the high-growth software group.

On a growth-adjusted basis, its multiple is nearly 60% below peers, while free cash flow valuation is also the lowest in its category, analysts added.

Jefferies said it expects Monday.com to sustain more than 20% annual revenue growth, supported by cross-selling, AI monetization, and expansion upmarket. It added that an investor day on Sept. 17 should reinforce confidence in the growth trajectory.