The FY21 core business performance was in-line with May’s guidance at the revenue and profit lines, highlights Morgans. Strong domestic conditions were considered to offset weakness in Asia and Latin America. Hold retained and target price rises to $29.64 from $27.14.
The broker estimates FY22 guidance implies 28% and 32% revenue and earnings (EBITDA) core bus growth. The around 120bps implied margin expansion comes despite continuing heavy investment in product and marketing, notes the analyst.
Sector: Commercial & Professional Services.
Target price is $29.64.Current Price is $31.41. Difference: ($1.77) – (brackets indicate current price is over target). If SEK meets the Morgans target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
