First-half earnings were lower than Credit Suisse expected. This was primarily because of lower earnings in TV and higher-than-expected costs.
Full year guidance has been lowered and management now expects underlying earnings (EBIT) of $165-175m. Target is reduced to $0.23 from $0.28. Neutral maintained.
Target price is $0.23.Current Price is $0.21. Difference: $0.02 – (brackets indicate current price is over target). If SWM meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).