FY18 results were strong and ahead of estimates, albeit largely because of FX gains. Momentum in mobile and internet was a highlight but the broker is concerned about the lack of a trading update. UBS cuts FY19-21 estimates for earnings per share by -2-10%.
Buy rating maintained. Target is reduced to $8.65 from $9.55.
Target price is $8.65.Current Price is $6.05. Difference: $2.60 – (brackets indicate current price is over target). If KGN meets the UBS target it will return approximately 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).