The maiden FY16 result beat expectations. Macquarie observes Australia and Canada were behind the beat, with revenues around 4% ahead of prospectus.
The company has retained its FY17 prospectus forecasts, assuming a continuation of current conditions. This does not surprise Macquarie, despite the new affiliate win. The broker upgrades medium to long-term forecasts not to the fullest extent possible.
Outperform rating retained. Target rises to $2.71 from $2.36.
Target price is $2.71.Current Price is $2.49. Difference: $0.22 – (brackets indicate current price is over target). If GTN meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).