Morgans believes the small-medium business segment will be an important growth driver over the next three years. The broker’s valuation increases after rolling forward to FY17 forecasts.
The medium-term profile is supported by strong cash flow, net cash balance sheet and a solid dividend yield. Add rating retained. Target is raised to $4.80 from $3.15.
Target price is $4.80.Current Price is $4.67. Difference: $0.13 – (brackets indicate current price is over target). If VTG meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).