Reports suggest Australia’s flu season is extensive and well ahead of any of the previous five years at this early stage. Morgan Stanley believes this will translate into strong support for sales in the fourth quarter of FY19 and first quarter of FY20.
There is also greater confidence in the cost reduction program, which should support near-term earnings growth. Morgan Stanley upgrades to Equal-weight from Underweight and raises the target to $84 from $75. Industry view is: Cautious.
Sector: Household & Personal Products.
Target price is $84.00.Current Price is $96.18. Difference: ($12.18) – (brackets indicate current price is over target). If BKL meets the Morgan Stanley target it will return approximately -14% (excluding dividends, fees and charges – negative figures indicate an expected loss).