Macquarie has analysed revenue growth trends across ASX’ key revenue segments, representing 75% of revenues, and concluded revenues can sustainably grow at 4.6%pa.
This implies 3.9%pa dividend growth, assuming 5.5%pa long term expense growth. Given greater confidence in the growth outlook, the broker upgrades to Ourtperform from Neutral. Target rises to $94.00 from $66.50.
Sector: Diversified Financials.
Target price is $94.00.Current Price is $77.67. Difference: $16.33 – (brackets indicate current price is over target). If ASX meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
