In what Morgans describes as a disappointing outcome, Kina Securities and Westpac Bank ((WBC)) have mutually agreed to terminate the agreement for the purchase of Westpac’s Asia Pacific businesses. The broker maintains its Add rating.
After allowing for transaction costs and lost deal revenue, management guided to an FY21 result in-line with FY20. The analyst makes similar allowances for costs, lifts FY21 underlying EPS by 2%, and makes no changes to FY22 EPS. The target falls to $1.28 from $1.31.
Sector: Diversified Financials.
Target price is $1.28.Current Price is $0.88. Difference: $0.40 – (brackets indicate current price is over target). If KSL meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges – negative figures indicate an expected loss).
