With the market storming higher yesterday, unsurprisingly a number of shares raced to 52-week highs.
Three in particular which caught my eye are listed below. Can they climb higher or is now the time to take profit?
The Bega Cheese Ltd (ASX: BGA) share price responded positively to news that its Vegemite acquisition has completed successfully and hit a new 52-week high of $6.96. The acquisition had been held up due to the outage of Mondeléz International's IT network. Management expects the transaction to contribute between $40 million and $45 million in EBITDA over the first 12 months. If it delivers on expectations then I feel the Bega Cheese share price could run a lot higher over the next 12 months.
The Costa Group Holdings Ltd (ASX: CGC) share price reached a new 52-week high of $5.08 on Tuesday. The shares of Australia's leading grower, packer, and marketer of fresh fruit and vegetables have been on a tear since it announced its first-half results in February. Strong demand and favourable pricing not only resulted in a 35.7% increase in net profit, but led management to upgrade its full-year profit growth guidance. Although I am a fan of the company, at 34x annualised earnings I'm not a buyer of its shares.
The Flight Centre Travel Group Ltd (ASX: FLT) share price hit a 52-week high of $39.96 yesterday. This latest gain means the travel agent's shares have rallied almost 40% in the last three months. Whilst I do expect a much stronger second-half from Flight Centre, I believe it will take something extra special to lift its shares higher from here. As I said last week, at approximately 19x estimated FY 2017 earnings, I feel Flight Centre's shares are a touch overvalued now.
