Morgans has attended the UK investor briefing and now considers it has a better understanding of the UK vertically-integrated model.
The broker believes Slater & Gordon should be able to resolve cases in a timelier manner and extract the expected cash components given its reputation.
Add rating and $7.52 target retained. The broker believes risk is being priced in at current levels and clarity around accounting issues should be forthcoming in the next 12 months.
Target price is $7.52 Current Price is $2.59 Difference: $4.93
If SGH meets the Morgans target it will return approximately 190% (excluding dividends, fees and charges).
Current consensus price target is $5.73, suggesting upside of 120.4%(ex-dividends)
The company's fiscal year ends in June.
SGH Price at posting:
$2.64 Sentiment: Buy Disclosure: Held
