Management has reiterated expectations for FY19 net profit to be broadly in line with FY18 but the outlook does not include the recent Quadrant Energy sale. Morgans upgrades FY19 and FY20 estimates for earnings per share by 4-8%.
The broker believes the business is tracking well and there are reasonably robust activity levels in all divisions, besides corporate and asset finance. As there are still, potentially, sizeable realisations of assets to be had, Morgans suspects upside earnings risk exists.
Add rating maintained. Target rises to $130.70 from $115.80.
Sector: Diversified Financials.
Target price is $130.70.Current Price is $124.87. Difference: $5.83 – (brackets indicate current price is over target). If MQG meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).