Cardno have positively surprised the market by providing guidance for FY20 earnings of $41m-$43m, according to Morgans.
Net debt has been reduced down to around $1m and the company has benefited from a $12m deferral of GST.
However, the broker reduces its expectations for FY21 and FY22 and lowers earnings estimates by -9% and -14%, respectively. This is due to the ongoing impact of covid-19 in the key markets of Asia Pacific and the Americas.
The Add rating is maintained. The target price is decreased to $0.565 from $0.594.
Sector: Capital Goods.
Target price is $0.56.Current Price is $0.34. Difference: $0.23 – (brackets indicate current price is over target). If CDD meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).
