Deutsche Bank believes the revised guidance for FY19 for operating earnings (EBITDA) of $245m is conservative as it no longer assumes any recovery in raw material costs.
Resin prices are beginning to decline in the US dollar business while the Australian dollar is stabilising.
Deutsche Bank maintains a Buy rating as the stock is trading at a -41% discount to valuation. Target is $5.50.
Target price is $5.50.Current Price is $3.25. Difference: $2.25 – (brackets indicate current price is over target). If PGH meets the Deutsche Bank target it will return approximately 41% (excluding dividends, fees and charges – negative figures indicate an expected loss).