ECX – UBS rates the stock as Buy

The FY19 result was complicated, as expected. Core business was in line with UBS estimates. The broker expects non-core business to be divested in FY20 and, post-restructuring, to have a neutral impact on FY20 operating earnings (EBITDA).

Deleveraging remains in focus and the broker expects gross debt to reduce to $175m by FY21 and dividends to be declared from the second half of that year. Buy rating and $2.20 target maintained.

Sector: Diversified Financials.

Target price is $2.20.Current Price is $1.68. Difference: $0.52 – (brackets indicate current price is over target). If ECX meets the UBS target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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 →