Morgans assesses a broadly solid FY21 result for Washington H Soul Pattinson & Company. Strong contributions from some core investments is considered to show the earnings cyclicality of these businesses. The 36cps fully franked final dividend was in-line.
Group underlying profit rose 93% on the previous corresponding period, largely due to Brickworks’ ((BKW)) solid performance from both its building products Australia and Property divisions. New Hope Corp ((NHC)) also contributed strongly due to a thermal coal price recovery.
Morgans raises its target price to $36.78 from $28.84 and maintains its Hold rating.
Target price is $36.78.Current Price is $37.74. Difference: ($0.96) – (brackets indicate current price is over target). If SOL meets the Morgans target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).