Trading in the second quarter appears to have improved while the company has reiterated FY20 guidance for 10-16.5% growth in operating earnings.
Morgans considers the stock has a long-dated growth profile stemming from gaining market share and optimising its technology.
However, a material re-rating may take time and require sustained improvement in operating conditions. Key catalysts include a lessening of geopolitical uncertainty. The broker maintains an Add rating and $23.40 target.
Sector: Consumer Services.
Target price is $23.40.Current Price is $20.03. Difference: $3.37 – (brackets indicate current price is over target). If CTD meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
