The FY20 performance was in-line with Morgans expectations while FY21-25 DPS guidance was better than expected. The company provided FY21 DPS guidance of 12.5cps, with targeted annual growth at or around CPI through to 2025.
The broker acknowledges there are are attractive 12-month total shareholder returns on offer though is wary of the sharp rise in bond yields. The Hold rating is maintained. The target price is increased to $2.17 from $2.16.
Sector: Utilities.
Target price is $2.17.Current Price is $2.02. Difference: $0.15 – (brackets indicate current price is over target). If SKI meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
