AGI – UBS rates the stock as Sell

A first half adjusted loss before tax (ex currency impact) of -$43m was below the UBS forecast loss of -$28m. As expected the period was impacted by significant disruption from covid across a number of regions which reduced customers’ capex budgets.

The performance in Australia and North America showed signs of sequential improvement from the 2H20 though Latin America (Latam) revenue declined -85% and continues to be negatively impacted by mandated casino closures and operating restrictions.

Sell rating is maintained. Target is increased to $0.35 from $0.30. While concerns around existing debt maturities have been addressed, UBS forecasts a prolonged recovery profile across Latam.

Sector: Consumer Services.


Target price is $0.35.Current Price is $0.77. Difference: ($0.42) – (brackets indicate current price is over target). If AGI meets the UBS target it will return approximately -120% (excluding dividends, fees and charges – negative figures indicate an expected loss).



Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →