FY16 results held no surprises for Morgans although FY17 distribution guidance of 19.5c is above expectations.
The broker observes future catalysts include accretive acquisitions, asset re-rating and potential inclusion in the index. The company also has organic growth opportunities in the existing portfolio.
Add rating retained. Target rises to $3.35 from $3.32.
Sector: Real Estate.
Target price is $3.35.Current Price is $3.16. Difference: $0.19 – (brackets indicate current price is over target). If HPI meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).