Beacon Lighting’s FY20 result was in-line with recent guidance and benefited from the covid-19 in-home spending surge in the second half, says Morgans.
The company ended the financial year with $14m net cash. No formal guidance was given by management, other than details of a strong start to trading in FY21.
The company stated a long-term store target of 170, which is 50% higher than the current store network, while Morgans forecast 140 stores in FY28.
Morgans upgrades its pre-AASB16 EPS forecasts by 5%-6% on higher store rollout assumptions, like for like sales and operating expense leverage.
The Add rating is maintained. The target price is increased to $1.51 from $1.40.
Sector: Retailing.
Target price is $1.51.Current Price is $1.35. Difference: $0.16 – (brackets indicate current price is over target). If BLX meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
