OptiComm boasts a strong development pipeline that continues to perform well, hence the broker still expects a small beat of prospectus forecasts in FY20. For FY21, the broker forecasts a -20% decline in new dwelling construction. Construction earnings lag construction commencements hence the broker sees a dip in FY21 before a rebound.
Forecast FY21 earnings fall -15%, but the broker notes a key attraction of OptiComm’s unique business model is recurring network earnings. Target falls to $4.54 from $4.56, Hold retained.
Sector: Telecommunication Services.
Target price is $4.54.Current Price is $4.70. Difference: ($0.16) – (brackets indicate current price is over target). If OPC meets the Morgans target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
