Morgans View

Investment view – Add recommendation and A$3.03 price target Despite recent share price weakness, we believe VIT is delivering on its strategy. Today's announcement demonstrates to us that VIT can successfully integrate strategic acquisitions and expand offshore, in line with its growth strategy. We reiterate our positive investment view on VIT due to its diversified portfolio of well-known brands, leverage to favourable industry dynamics, growth opportunities and solid earnings growth. Given FY17 includes the removal of duplicated costs following the Musashi acquisition, we are focused on multiples in this year. In our view, trading on a FY17F PE of 13.5x (or PEG of 0.5x), VIT is attractively priced for its growth profile and against the broader FMCG sector.