Broker upgrade $1.05 PT

they are forecasting FY21 EBITDA of $20.8 million

logistics division expected to do $50 million revs

Yep. They’re higher than me on EBITDA but below my valuation. Interesting their Val method is sum of the parts, which is probably due to the potential sale of Logistics.

They have a 2021 PE of just 8.4x. The small ords is around 20x. Even discounting against that index and applying a 16x multiple gets me to $1.28 on their numbers. It’s worth noting they expect EPS to fall in 22 and 23 but this is due to a segment mix change and tax losses being absorbed by FY23.

Still LOTS of upside here. They also have a 3c dividend in FY21 even though EPS is expected to be 8c. That’s a low payout ratio. I’d expect something closer to 4c, which gives me a market yield of over 5% and for holders that have owned this for a little bit, a very very high yield.