Despite a solid headline level beat, Credit Suisse does not find anything substantive in Ampol’s first quarter result to fundamentally change its earnings forecast. Shop network sales did well, observes the broker, seemingly locked in an improvement in shop performance.
Retail segment’s outperformance came from above-market pricing which, the broker states, led to a stronger than expected fuel margin result.
Credit Suisse retains a Neutral rating and raises the target to $27.54 from $27.50.
Target price is $27.54.Current Price is $25.73. Difference: $1.81 – (brackets indicate current price is over target). If ALD meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).