Ann: Legend Acquires System Control Engineering Group, page-2

Morgans upgrades LGD to Add from Hold

Monday, May 11, 2015 - 18:09

The company has acquired the assets of Systems Control Engineering, which supplies industrial heating, refrigeration and air conditional components.​

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Morgans considers the price of $10.2m fair as it complements the company's existing operations. To reflect the acquisition the broker increases FY16 and FY17 forecasts by 2.1% and 3.9% respectively.​

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Rating is upgraded to Add from Hold. Target is steady at 30c.​

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Target price is $0.30 Current Price is $0.23 Difference: $0.07
If LGD meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).​

The company's fiscal year ends in June. Morgans forecasts a full year FY15 dividend of 1.80 cents and EPS of 3.50 cents. At the last closing share price the estimated dividend yield is 7.83%.​

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is ​

6.57​

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FN Arena​

Market sentiment: 1.0
Companies: LEGEND CORPORATION LIMITED