Macquarie found the AGM update light on outlook, although the company has reaffirmed growth expectations for FY18 underlying earnings.
The broker’s FY18 forecasts for EBIT growth of 18% are underpinned by 5% organic growth/cost savings and 13% from acquisitions, Century and FMC.
The broker considers the relatively soft update as a buying opportunity. Outperform rating retained. Target is reduced to $10.29 from $10.70.
Target price is $10.29.Current Price is $8.51. Difference: $1.78 – (brackets indicate current price is over target). If NUF meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).