While acknowledging the shares can potentially fall victim to bond market mayhem, Morgans maintains Viva Energy offers an attractive yield in a world still hungry for income.
The stockbroker has slightly changed its modeling to incorporate the capital raising undertaken to fund the latest acquisition of eight petrol service stations. This has sliced off 1c from the price target; $2.53.
Add rating retained with the analysts summing up potential catalysts for the shares: additional accretive acquisitions, asset re-ratings, and DPS outperformance.
Sector: Real Estate.
Target price is $2.53.Current Price is $2.27. Difference: $0.26 – (brackets indicate current price is over target). If VVR meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).