Higher-than-expected costs growth in the second half, in addition to commentary regarding a difficult market, leads Credit Suisse to believe FY21 will also experience higher costs and the benefits of the cost reduction program are likely only in FY22.
A decision to defer a final dividend is likely to create further uncertainty, in the broker’s view. Credit Suisse maintains a Neutral rating and $7 target.
Target price is $7.00.Current Price is $6.54. Difference: $0.46 – (brackets indicate current price is over target). If BEN meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).