Management has updated on the medium-term growth outlook. With earnings re-based, the company appears confident an inflection point has been reached. Macquarie considers the new targets lofty, implying operating earnings of $165m in FY20, forecast to increase to around $200m in FY21 and over $250m by FY23.
The company has reiterated the FY19 outlook and remains comfortable with consensus expectations. Macquarie maintains a Neutral rating and $5.50 target.
Sector: Consumer Services.
Target price is $5.50.Current Price is $5.09. Difference: $0.41 – (brackets indicate current price is over target). If NVT meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).