Intega Group’s 1H21 result revealed earnings (EBITDA) in excess of Morgans estimates and a surprise 1 cent dividend. Management also flagged a share buyback and said a dividend will be declared at the full year result.
The Add rating is maintained. Morgans increases earnings forecasts for FY21-23 by 10%, 15% and 14%, respectively. The target price is increased to $0.58 from $0.50. The broker highlights margin expansion, a strong pipeline of work and scope for a further lift in margins.
Sector: Capital Goods.
Target price is $0.58.Current Price is $0.33. Difference: $0.25 – (brackets indicate current price is over target). If ITG meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges – negative figures indicate an expected loss).
