An underlying profit (NPBT) of $127m in the first four months of FY21 implies to Morgans a FY21 total of $380m, on a run-rate basis. While the broker now forecasts $371m, there’s potential for over $400m.
Balance sheet strength has management actively reviewing multiple acquisition opportunities, which Morgans sees as important, given the successful track record in this area. Also, it’s considered acquisitions could assist with growth, when margins eventually normalise.
The analyst lifts FY21-23 EPS forecasts by 9%, 2.1% and 2.0%, respectively. The target price is increased to $17.39 from $16.86 and the Hold rating is maintained.
Sector: Retailing.
Target price is $17.39.Current Price is $14.54. Difference: $2.85 – (brackets indicate current price is over target). If APE meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
