Morgan Stanley believes the business is on track for earnings and working capital targets. The broker believes the current share price is capitalising current seasonal challenges, although greater confidence in the balance sheet is required for any sustained re-rating.
The broker envisages scope for material de-leveraging through the second half and significant valuation upside. Overweight rating. Target is $7.10. Industry view is Cautious.
Target price is $7.10.Current Price is $5.06. Difference: $2.04 – (brackets indicate current price is over target). If NUF meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).