After a stronger-than-expected first half result, Morgans upgrades FY21-23 earnings (EBITDA) forecasts by 7.8%, 3.3% and 2.9%, respectively. Thus, the target price rises to 6.50 from $6.15.
The broker highlights an increased market share across several key markets and the sale of higher margin products. Additionally, benefits from the Performance Improvement Program (PIP) are estimated to be lowering the cost base.
The analyst maintains an Add rating due to positive industry fundamentals and self-help measures (like the PIP) that should deliver a solid earnings recovery over the next couple of years. The Add rating is unchanged.
Sector: Materials.
Target price is $6.50.Current Price is $5.05. Difference: $1.45 – (brackets indicate current price is over target). If NUF meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
