KSL – Morgans rates the stock as Add

By Broker News | More Articles by Broker News

Asia Development Bank will invest US$10m in Kina Securities by way of a placement at $1.37 a share. Morgans assesses the deal will strengthen the company’s banking relationships and provide access to ADB expertise.

A significant investment by an AAA-rated bank provides investors with greater comfort on the overall risk profile, the broker adds.

2019 and 2020 estimates for earnings per share are lowered by -3% and -7% respectively because of the dilution from the capital raising.

Add rating maintained. Target rises to $1.65 from $1.51.

Sector: Diversified Financials.

Target price is $1.65.Current Price is $1.48. Difference: $0.17 – (brackets indicate current price is over target). If KSL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

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 →