Pendal Group’s 1H operating profit result was better than Morgans expected and was a 16% beat versus the consensus forecast, driven by tight cost control and a management fee beat.
The result benefitted from the acquired Thompson, Siegal & Walmsley contribution and higher investment income, explains the analyst. The target price rises to $5.95 from $5.65.
The broker maintains a Neutral rating as the outlook remains subdued and on a relative basis risk/reward is more favourable for stocks elsewhere in the sector.
Sector: Diversified Financials.
Target price is $5.95.Current Price is $5.33. Difference: $0.62 – (brackets indicate current price is over target). If PDL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).