BP update snip "We see a disconnect in the current share price...

BP update snip

"We see a disconnect in the current share price and valuation as exceptional and expect the share price to rally at some point over the year ahead as the profitability of the business is better appreciated. FY17 was a messy year for the firm, and the fact that the company closed the year in a stronger position with growth across the business shouldn’t be ignored. The robust flows appear to be continuing into FY18, which sets the company up for a favourable September quarter update. "

"Earnings revisions Following the FY17 result we’ve downgraded our underlying NPAT by -8.7% in both FY18 and FY19 respectively. The earnings revision is primarily driven by lower earnings from UK versus expectation, but offset to a degree by the strength in the Australian business. Following our earnings revisions and after rolling our valuation forward by a year our revised Price Target is $0.90 per share (previously $0.82), with our Buy recommendation remaining unchanged. We note that the company’s move into profitability is outweighing the moderate downgrade to EPS. "

.