API – Credit Suisse rates the stock as Underperform

By Broker News | More Articles by Broker News

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).

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 →