Fosters Target 60c

Have attached the latest Fosters report, which is on their website. What a story this has been! Have to say I lightened a few again around my initial target of 50c. Not because my confidence has changed, but after the HR darlings of 2015 plummeted to earth, I'm not going to get caught again taking some profits on the way up. Should they land something from the ASX25 or internationally as I and many have disucced then that's a completely different set of circumstances, but I always said 100m MC was my first target.. Enjoy and GL all


https://gallery.mailchimp.com/3c4aa...c9a-a6d0-4904-8f19-19df4c8ebeb0/LVH170216.pdf

Valuation and Earnings:  We make only slight changes to earnings by increasing both our forecast TCCs and operating expenses, resulting in FY17e & FY18e NPAT of -$5.4M and - $4.3M (prior-$4.6M & -$3.6M).  Our valuation of LVH increasesto $0.60/share from $0.43/share, primarily due to unwinding some risk of the offshore market opportunity.

Recommendation:  We upgrade our recommendation to Buy from Speculative Buy, as we have increased our confidence in LVH, given the successful performance of the product in the market. We have upgraded our price target to $0.60/share from $0.43/share, in- line with our valuation. Catalysts include major client and RPO signings.

Analyst Mark Fichera - disc owns 50,000 lvh shares