First-half results were pre-released and the main new item in the financials was the growth guidance from the PnP acquisition. This contributes to a lift in Morgans’ FY20-22 operating earnings estimates of 3-10%.
The second half catalysts include an acceleration of de-gearing and a possible re-financing of the US notes. The broker considers the stock too cheap and retains an Add rating. Target is raised to $2.85 from $2.80.
Sector: Capital Goods.
Target price is $2.85.Current Price is $2.24. Difference: $0.61 – (brackets indicate current price is over target). If EHL meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
