FY15 earnings were in line with Morgans. The final dividend was 3.86c and a further 2c special dividend was declared. The special dividend strategy is now under review.
The broker expects medium-term growth to be driven by the retail footprint and store acquisitions.
Timing and metrics are uncertain but Morgans assumes store numbers can rise to around 30 over time from the 16 currently in place.
An Add rating is maintained. Target is raised to $2.05 from $1.90.
Target price is $2.05.Current Price is $1.89. Difference: $0.16 – (brackets indicate current price is over target). If VTG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).