Morgans reviews assumptions ahead of the results on August 21. Revenue growth of 12% and operating earnings (EBITDA) growth of 10% are expected. The broker still envisages risks to guidance based on store roll-out and margins.
The company will move away from providing formal earnings growth targets from FY20 and the broker expects it to reiterate the 3-5 year annual footprint and same-store sales growth.
Hold rating maintained. Target is reduced to $44.89 from $47.27.
Sector: Consumer Services.
Target price is $44.89.Current Price is $40.30. Difference: $4.59 – (brackets indicate current price is over target). If DMP meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
