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ADH - Morgans rates the stock as Hold
BY BROKER NEWS - 13/07/2017 | VIEW MORE BROKER UPDATES

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ADH - ADAIRS LIMITED


The company's market update revealed operating dynamics have improved significantly towards the end of FY17, with Morgans pointing out operational profit (EBIT) is now expected to come in at the top-end of guidance range, adding [this is] "an outcome that looked highly unlikely six months ago".

New price target of $1.35 compares with $1.20 prior but given the share price has moved significantly higher already, the rating has been pulled back to Hold from Add.

The analysts do expect gross margin to be pressured towards the bottom of management's guidance, with the added observation the company will now be cycling a period of poor execution last year. Management's focus is now seen shifting towards further cost productivity tailwinds.

Sector: Retailing.

Target price is $1.20.Current Price is $1.27. Difference: ($0.08) - (brackets indicate current price is over target). If ADH meets the Morgans target it will return approximately -6% (excluding dividends, fees and charges - negative figures indicate an expected loss).



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The content of this information does in no way reflect the opinions of FN Arena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FN Arena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FN Arena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

 

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