IEL – Morgan Stanley rates the stock as Overweight

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First half result beat Morgan Stanley’s estimates. Earnings are re-based higher while sales growth assumptions are lifted for FY20 and beyond.

Despite reinvestment in operating expenditure, earnings margins (EBITDA) expanded to 22.0%. The company’s commentary included scope for geographic expansion, with new offices in Pakistan, and Nigeria added to the list by FY20.

Target is raised to $16.00 from $11.80. Overweight rating. Industry view is In-Line.

Sector: Consumer Services.

Target price is $16.00.Current Price is $13.75. Difference: $2.25 – (brackets indicate current price is over target). If IEL meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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