FY16 profit is expected to be 10-15% ahead of prospectus forecasts. Morgans observes operating conditions remain strong despite the recent macro economic volatility.
The broker now forecasts FY16 revenue growth of 25.5%. The stock is considered fair value and a Hold rating is maintained. Target rises to $3.54 from $2.87.
Target price is $3.54.Current Price is $3.28. Difference: $0.26 – (brackets indicate current price is over target). If MTO meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).