Reports of a board investigation into CEO Vik Bansal’s methods and the sale by the CEO of shares for the first time after five years with the company has triggered concerns, with the resultant shakedown in the share price, Credit Suisse observes.
The broker notes the CEO has been extremely effective and there is also the retirement of respected CFO Brendon Gill looming.
However, Credit Suisse thinks it unlikely the CEO will be forced to resign and believes the board has dealt with the issues appropriately. Rating is upgraded to Outperform from Neutral and the target is steady at $2.45.
Sector: Commercial & Professional Services.
Target price is $2.45.Current Price is $2.13. Difference: $0.32 – (brackets indicate current price is over target). If CWY meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
