Morgans was pleasantly surprised by the announcement of a special dividend of 8c per share, fully franked at the FY17 results. FY17 cash earnings were slightly better than forecast.
A further return to shareholders may not eventuate if the company does not operate a dividend reinvestment plan and the broker’s forecasts assume that no DRP will operate in respect of the 2018 interim and final dividends.
Target is $12.00. Hold retained.
Target price is $12.00.Current Price is $13.09. Difference: ($1.09) – (brackets indicate current price is over target). If BOQ meets the Morgans target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).