Kina Securities profit beat the broker by 6% on 7% better than expected revenues. It was a very solid result, the broker suggests, in a period the company bedded down the transitional ANZ PNG acquisition. Cost-to-income has risen slightly but Kina is creating a solid recent track record of delivery to complement its strong organic growth profile.
On only a 7x forward PE despite 25% earnings growth in 2019, the stock is undervalued as far as the broker is concerned. Add retained, target rises to $1.67 from $1.65.
Sector: Diversified Financials.
Target price is $1.67.Current Price is $1.24. Difference: $0.43 – (brackets indicate current price is over target). If KSL meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
