PTB Group’s FY20 result hit Morgans expectations for net profit before tax, foreign exchange and extraordinary items (NPBTFX) of $8m.
The company managed the difficult trading conditions in the second half by shifting towards engine and parts sales, noted the broker.
The company provided guidance for FY21 NPBTFX of between $11m-$13m.
The broker continues to forecast a fully franked 5cps total dividend in FY21, but notes that in the medium-term dividends may need to be partially franked.
The Add rating is maintained and the target price is increased to $0.86 from $0.77.
Sector: Capital Goods.
Target price is $0.86.Current Price is $0.74. Difference: $0.12 – (brackets indicate current price is over target). If PTB meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
