The company has guided to FY17 net profit growth at the top end of the 20-23% range. Citi increases estimates by 1-3% for FY17-19.
The broker acknowledges the merit in owning multiple touch points in the customer experience but remains concerned about the increased complexity stemming from diversification and the reduced visibility.
The broker retains a Neutral rating and increases the target to $4.25 from $4.01.
Sector: Diversified Financials.
Target price is $4.25.Current Price is $3.98. Difference: $0.27 – (brackets indicate current price is over target). If ECX meets the Citi target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).