The trading update was ahead of expectations. The company is forecasting first-half operating earnings of $300-310m on the back of domestic revenue growth and cost reductions.
With the stock offering 17% upside to the revised target price Morgans upgrades to Add from Hold. The broker also notes the current dividend yield of 4.5% is attractive in the current environment. Target is raised to $5.48 from $4.17.
Sector: Consumer Services.
Target price is $5.48.Current Price is $4.80. Difference: $0.68 – (brackets indicate current price is over target). If SGR meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
