NGI – Macquarie rates the stock as Outperform

The market update showed just how difficult navigating global turmoil has been for Navigator, suggest the analysts. Funds inflows disappointed and negative investment returns added to the disappointing performance.

Macquarie highlights the negative impact on H2 will be “material” because of the drop in performance fees. The analysts don’t think it feasible extra synergies from the MAS integration might compensate for this.

Earnings estimates have received a serious haircut (double-digit percentage reductions for three years). Outperform rating retained as the share price already has de-rated. Target price drops to $3.36 from $5.82.

Sector: Diversified Financials.

Target price is $3.36.Current Price is $2.88. Difference: $0.48 – (brackets indicate current price is over target). If NGI meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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