The maiden result represented 57% of the FY19 prospectus forecast. Strong growth was underpinned by the launch of the Ninja V as well as higher-than-forecast bundle sales across various products.
The gross margin has been affected by higher component costs but Morgans believes this is not uncommon in the initial phases of launching a new product.
Prospectus operating earnings (EBITDA) were reiterated. Morgans maintains an Add rating and raises the target to $0.90 from $0.78.
Sector: Consumer Durables & Apparel.
Target price is $0.90.Current Price is $0.80. Difference: $0.10 – (brackets indicate current price is over target). If AMS meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
