The company has raised $125m via a placement and launched a share purchase plan to raise a further $10m. The debt facility has increased to $350m, providing $250m of funding capacity.
The capital will be used to accelerate the company’s expansion and provide flexibility on the balance sheet. Morgans believes this signals confidence in the pipeline of opportunities.
Morgans continues to view the 3-5 year growth path as attractive, with potential upside from an acquisition or a faster-than-forecast return to increased domestic PDL market share.
Add rating maintained. Target is reduced to $23.70 from $24.10.
Sector: Diversified Financials.
Target price is $23.70.Current Price is $21.20. Difference: $2.50 – (brackets indicate current price is over target). If CCP meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
