Brokers Forsyth Barr expects to see a strong annual result from Freightways when it reports on Monday.
The express package and information management company's profit for the June 2020 year fell by 25 per cent to $47.4 million due to Covid-19 lockdowns in New Zealand and Australia.
"We expect Freightways will deliver a strong set of 2021 results, driven by a favourable volume environment in both the business-to-business and business-to-consumer parcel channels, improved parcel margins resulting from its 'pricing for effort' initiative, and the accretive Big Chill acquisition," Forsyth Barr said in a research note.
The broker expects the company's underlying net profit before acquisition-related amortisation of $80.4m, up 35 per cent on the prior year.
"While we expect Freightways to be a net beneficiary of Covid-19, ongoing lockdowns in Australia will weigh on the information management division's near term performance," Forsyth Barr said.
Freightways trades on a one-year forward price earnings multiple of 21 times - near the upper end of its historical range.
"However, we believe Freightways provides a better quality and higher growth story than the Freightways of yesteryear," the broker said.