FY19 net profit was slightly ahead of Credit Suisse forecasts. While the outlook has improved, the broker notes there are still near-term risks. Performance fees are expected to remain low in FY20 and investments in growth initiatives continue.
The broker envisages no need to chase the stock at current levels and maintains a Neutral rating. Target is raised to $8.40 from $7.20.
Sector: Diversified Financials.
Target price is $8.40.Current Price is $8.00. Difference: $0.40 – (brackets indicate current price is over target). If PDL meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
