2256 GMT [Dow Jones] -- Morgans stays positive on the earnings outlook for electricals rentals business Thorn Group (TGA.AU), even as it downgrades the stock. The broker moves to hold from add, after a 13% rally by Thorn's shares over the past month pushed it closer to its valuation. That rally was given new life Thursday when Thorn reported a 13.6% increase in FY15 underlying earnings to A$34.2 million, and unveiled a final dividend of 6.75 cents/share. Morgans analyst Scott Murdoch believes Thorn is set to benefit from a full-year contribution from Cash Resources Australia in FY16, predicting a 5% boost to net profit from the acquisition of the invoice financing business. Thorn's FY15 result also showed momentum in its Thorn Equipment Finance division, with revenue up 30%. TGA last traded at A$2.91. ([email protected]; @dwinningWSJ)
(END) Dow Jones Newswires
I'm with you PP in regard to broker recommendations. I've read too many stories of brokers downgrading stocks then buying as the price drops. Their motives are not always transparent.
TGA Price at posting:
$2.98 Sentiment: Hold Disclosure: Held
