CGR – Morgans rates as Add

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The company recently raised $13m in equity and the proceeds will be used to strengthen the balance sheet post the acquisition of Thorn Trade and Debtor Finance. Morgans calculates, post settlement, the capital base supports an invoice loan book of $170-250m.

This should provide the company with meaningful scale benefits. The broker maintains an Add rating and raises the target to $0.63 from $0.60.

Sector: Commercial & Professional Services.

Target price is $0.63.Current Price is $0.53. Difference: $0.10 – (brackets indicate current price is over target). If CGR meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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