Deutsche Bank was disappointed with the FY18 results, noting a severe earnings hole is emerging in FY19. While the company exceeded FY18 revenue guidance, the broker believes the expectation for construction revenue to decline in FY19 implies double-digit declines in earnings.
The broker believes the stock is expensive and downgrades to Sell from Hold. Target is $11.60.
Sector: Capital Goods.
Target price is $11.60.Current Price is $14.17. Difference: ($2.57) – (brackets indicate current price is over target). If MND meets the Deutsche Bank target it will return approximately -22% (excluding dividends, fees and charges – negative figures indicate an expected loss).