FY18 earnings guidance is around -20% lower than previous consensus forecasts, at EBITDA of $36-43m. Earnings have been affected by the timing of the release of new devices, in particular the delayed availability of the iPhone X stock.
Morgans suggests the base level of Telstra ((TLS)) retail earnings remains uncertain. At this stage, the broker cannot gain confidence that the new venture will drive meaningful growth over FY19/20.
Hold retained. Target reduced to $1.54 from $1.86.
Target price is $1.54.Current Price is $1.35. Difference: $0.19 – (brackets indicate current price is over target). If VTG meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).