PPE – Morgans rates the stock as Add

By Broker News | More Articles by Broker News

The company has announced the acquisition of Halcyon Knights, an IT recruitment company, for $13.5m. This will increase People Infrastructure’s exposure to the sector and Morgans estimates an increase to FY20 earnings per share of 16%.

Given the attractive growth profile and undemanding FY20 PE of 12.7x the broker maintains an Add rating. Target is raised to $3.10 from $2.63.

Sector: Commercial & Professional Services.

Target price is $3.10.Current Price is $2.84. Difference: $0.26 – (brackets indicate current price is over target). If PPE meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).


Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →