The company has guided to a decline in underlying net profit in the first half because of challenging industry conditions that particularly affect the retail business. An improvement is expected in the second half.
Credit Suisse notes earnings are typically skewed to the second half anyway and, while expecting a 53% skew, does not forecast an improvement as trading conditions are likely to remain the same.
The broker is forecasting a -6% decline in underlying net profit in the first half. Underperform rating maintained. Target is reduced to $1.25 from $1.28.
Sector: Health Care Equipment & Services.
Target price is $1.25.Current Price is $1.35. Difference: ($0.10) – (brackets indicate current price is over target). If API meets the Credit Suisse target it will return approximately -8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
