Tassal (TGR.AU) maintained at Buy with price objective of A$5.00 vs yesterday's close at A$1.85, says Merrill Lynch.
TGR "a compelling investment", net profit in FY09 expected around A$30 million, a sixfold increase from FY05, then zooming to A$70 million in FY15 as strategy unfolds; this earnings profile supported by favorable industry structure, management capability that make TGR "one of our preferred small cap bids".
Delivering guidance of A$30 million quite important for TGR as it will reinforce what has been to date a skeptical market "that there is a step change in earnings profile currently under way," says Merrill Lynch
TGR Price at posting:
$1.98 Sentiment: LT Buy Disclosure: Held
