National Hire Still Attractive, Merrills Says ------------------------------------------------------
Although the recent result fell short of Merrill Lynch‘s expectations, the analysts still feel National Hire‘s (NHR) fundamentals are in tact. While the analysts have cut their FY06 and FY07 profit forecasts by 7% and 9% respectively, they observe that the turnaround is almost complete and that the company is poised to deliver strong growth.
The target price has also been reduced, to 46c, but even if the stock were to trade at this price it would still be at a 20% discount to the market on an FY06 PE basis, the analysts say.
Citigroup also rates the stock a Buy. National Hire closed yesterday at 37c.
NHR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
