MFG – Morgans rates the stock as Hold

Magellan Financial Group delivered a strong FY20 result that was in-line with expectations, according to Morgans.

Management fees were up 25% on the previous corresponding period, while underlying profit (NPAT) was up over 20% and the dividend increased by over 16%, states the broker.

The final dividend was $1.22 (including a performance fee dividend of 30.4 cents).

The analyst states the Group’s bottom-up growth initiatives (leveraging its growing retail client base and balance sheet strength) could deliver significant medium-term FUM growth.

The Hold rating is maintained. The target price is increased to $64.05 from $61.15.

Sector: Diversified Financials.

Target price is $64.05.Current Price is $64.30. Difference: ($0.25) – (brackets indicate current price is over target). If MFG meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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