The FY20 earnings (EBITDA) margins were close to Morgans expectations as traffic remains materially below pre-covid levels. The AUD/EUR and bond yields are also considered a headwind for DPS and valuation.
Mind you, the analyst believes the share price has captured most of this and the Add rating is retained while the target is decreased to $6.14 from $6.51.
Management issued guidance for the 2H20 distribution of 13cps which is below the 17.5cps the analyst was expecting. Consequently, Morgans downgrades the FY21 forecast DPS to 26cps from 31cps.
Sector: Transportation.
Target price is $6.14.Current Price is $5.49. Difference: $0.65 – (brackets indicate current price is over target). If ALX meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
