WTP - Morgans rates the stock as Add
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The company has downgraded earnings guidance to breaking even in FY17, having previously forecast a pre-tax profit of $8.5m. The downgrade has been affected by pressure on under-performing contracts.
While under-performing projects raise the risk of depleting cash, Morgans believes the net position is sound in FY17. the broker retains a Add rating based on the latent value in the balance sheet. Target is reduced to $0.75 from $0.88.
Sector: Capital Goods.
Target price is $0.75.Current Price is $0.63. Difference: $0.13 - (brackets indicate current price is over target). If WTP meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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