The company estimates that around $15-20m in FY20 income will shift to future years. Citi assumes $18m is moved from FY20. This does not materially affect valuation.
The broker points out income is being spread, not lost. In light of the revisions and the adjusted funding model, the target is reduced to $3.11 from $3.17. Neutral rating maintained.
Sector: Commercial & Professional Services.
Target price is $3.11.Current Price is $2.82. Difference: $0.29 – (brackets indicate current price is over target). If SGF meets the Citi target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
