The FY19 result was complicated, as expected. Core business was in line with UBS estimates. The broker expects non-core business to be divested in FY20 and, post-restructuring, to have a neutral impact on FY20 operating earnings (EBITDA).
Deleveraging remains in focus and the broker expects gross debt to reduce to $175m by FY21 and dividends to be declared from the second half of that year. Buy rating and $2.20 target maintained.
Sector: Diversified Financials.
Target price is $2.20.Current Price is $1.68. Difference: $0.52 – (brackets indicate current price is over target). If ECX meets the UBS target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
