FY16 results were ahead of expectations, driven by a combination of like-for-like revenue growth and store acquisitions.
Morgans considers the outlook is very strong with the potential for scale benefits in the longer term and the company has a well defined strategy.
Rating is downgraded to Hold from Add on valuatoin. Target is raised to $5.20 from $4.80.
Target price is $5.20.Current Price is $4.84. Difference: $0.36 – (brackets indicate current price is over target). If VTG meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).