The company has recently reiterated net profit growth guidance for FY19 of 9% and will host an investor briefing on July 3. Morgans assesses the company is capable of sustaining a solid single-digit organic growth profile across the forecast years.
The growth profile may have slowed from lofty heights but the valuation is considered undemanding and there are reasonably defensive industry dynamics that create an investment proposition, particularly within the consumer sector, in the broker’s view.
Target is reduced to $6.31 from $6.54. Add rating maintained.
Sector: Retailing.
Target price is $6.31.Current Price is $5.58. Difference: $0.73 – (brackets indicate current price is over target). If BAP meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
