The first half result revealed the group’s underlying Investment Bond profit (NPAT) was around 11% above Morgans estimates. Also, Lonsec earnings broadly offset annuity development costs, explains the broker.
Funds under management in the Listed Investments Solutions business (considered the exciting growth component of Lonsec by Morgans) broadly doubled in the six months between June and December 2020.
The analyst lifts FY21 group profit forecasts by 25% (off a low base), on the slightly higher Investment Bond and Lonsec earnings forecasts. The target is increased to $0.90 from $0.871 and the Add rating is unchanged.
Sector: Insurance.
Target price is $0.90.Current Price is $0.69. Difference: $0.21 – (brackets indicate current price is over target). If GDG meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
