FY21 results for Vita Group were boosted by the JobKeeper payments. As lockdowns and restrictions are again at elevated levels, Ord Minnett considers the outlook for FY22 much weaker in the absence of government financial support.
Negotiations with Telstra remain the value driver. FY21 revenue, earnings and net profit were all in line with forecasts. The broker retains a Speculative Buy rating. Target price is $1.11.
Sector: Retailing.
Target price is $1.11.Current Price is $0.91. Difference: $0.20 – (brackets indicate current price is over target). If VTG meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
