FY19 net profit was below expectations and at the bottom of the target range of $545-565m, Morgans notes. Overall, the broker considers the result underpins confidence that the earnings profile has largely been re-based.
However, deteriorating sales momentum in Australia on adviser disruption impacts is likely to be apparent. Morgans maintains a Hold rating and reduces the target to $7.31 from $7.37.
Sector: Diversified Financials.
Target price is $7.31.Current Price is $6.66. Difference: $0.65 – (brackets indicate current price is over target). If CGF meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).