Credit Suisse notes with the sale of Right2Drive (R2D), Eclipx Group has fulfilled its promise to simplify its business and can now shift its focus to value creation.
The broker highlights meaningful growth opportunities for the group like lifting its penetration in novated leasing and SME. The group can achieve or get closer to achieving its gross debt target of $175m by the end of FY20, believes the broker.
Credit Suisse maintains its Overweight rating on Eclipx Group with a target price of $1.70. Industry view: In-line.
Sector: Diversified Financials.
Target price is $1.70.Current Price is $1.44. Difference: $0.26 – (brackets indicate current price is over target). If ECX meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).