FY20 guidance has been withdrawn. Morgans believes it appropriate to revise forecasts and adjust dividend expectations, as cash conservation is paramount.
While the balance sheet is in a reasonable position, the broker reduces the valuation and applies a further -20% discount, setting the target at $0.66 from $1.15. Rating is downgraded to Hold from Add for the short term.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $0.66.Current Price is $0.44. Difference: $0.22 – (brackets indicate current price is over target). If MVF meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).
