Morgan Stanley observes, while general economic activity is challenged, the company has moved to consolidate its market share and invested $572m in a range of growth initiatives.
A third tenant has been announced for Moorebank. Much of the growth expenditure is being used to support contracts and around a third is for new acquisitions. The investment adds conviction to the broker’s forward earnings forecasts.
Target is raised to $3.38 from $3.21. Equal-weight rating, Cautious industry view retained.
Target price is $3.38.Current Price is $3.19. Difference: $0.19 – (brackets indicate current price is over target). If QUB meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).