Australian Vintage delivered FY21 profit (NPATS) 7.5% ahead of Morgans forecast, reflecting the benefit of an improving sales mix, successful NPD (McGuigan Zero) and distribution gains. Material EPS upgrades see the target rise to $1.06 from $0.83.
The analyst highlights the performance of the UK/Europe business, which was again the standout. It’s thought the company has made strong progress on executing its growth strategy throughout FY21 and this momentum is expected to continue in FY22.
Despite a strong share price performance, after earnings upgrades the analyst feels the stock’s valuation remains undemanding and maintains an Add rating.
Sector: Food, Beverage & Tobacco.
Target price is $1.06.Current Price is $0.84. Difference: $0.22 – (brackets indicate current price is over target). If AVG meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
