The FY21 result was better than Morgans expected as tight cost control kept losses and cash burn to a minimum. Upon attaining 80% vaccination rates, management feels international travel will return during 2H22. The broker expects earnings will fully recover in FY24.
The analyst maintains the Add rating given upside to the target price, which is now set at $3.03, up from $2.95. Management was unable to offer FY22 earnings guidance. First quarter total transaction value (TTV) has fallen again due to A&NZ border restrictions, notes Morgans.
The broker points out there’s sufficient liquidity to maintain operations well into 2023 based on a low cash burn of around -$2-3m per month.
Sector: Consumer Services.
Target price is $3.03.Current Price is $1.84. Difference: $1.19 – (brackets indicate current price is over target). If HLO meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges – negative figures indicate an expected loss).
