GWA - Morgans rates the stock as Hold
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The company has announced the sale of its door & access systems business for $107m. Morgans believes completion of the sale in early FY19 should leave plenty of capacity to pursue organic growth opportunities.
The broker believes the sole focus on bathrooms & kitchens going forward and a strong balance sheet warrant a higher multiple for the stock.
However, with a 12-month forecast shareholder return of -3%, a Hold rating is maintained. Target rises to $3.62 from $3.30.
Sector: Capital Goods.
Target price is $3.62.Current Price is $3.86. Difference: ($0.24) - (brackets indicate current price is over target). If GWA meets the Morgans target it will return approximately -7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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