The company ended June with $86.7bn in funds under management, up 24.7% over the financial year. Morgans expects an update on new products at the August results, such as the US sustainable and retirement income product, which are medium to longer term growth options.
Given the strong run in the share price, the broker suggests the stock is susceptible to any meaningful market pull-back. A Hold rating is maintained, given the quality of earnings and growth options as well as a strong balance sheet. Target is raised to $49.22 from $37.65.
Sector: Diversified Financials.
Target price is $49.22.Current Price is $54.72. Difference: ($5.50) – (brackets indicate current price is over target). If MFG meets the Morgans target it will return approximately -11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
