key points from Bell Potter Research:
Capital raising complete, timing right for rollout
With Servcorp’s $80m capital raising complete, far greater disclosure on the
Virtual Office growth strategy and deals/incentives for signing grade A office
leases near an all time high, we have moved Servcorp to a Buy with a $4.95 price
target.
Weak FY10, but small format floor growth has low execution risk
Investment in new floor growth is lower risk than historic growth given the new
format is a quarter of the capex and half the operating costs (ex lease).
Trading at a 30% discount to mkt on mature FY12 earnings
Valuation: price target raised to $4.95
Our $4.95 price target is the mid-point of our EV/EBIT and PE valuation
methodologies applying mid cycle earnings multiples.
Add to My Watchlist
What is My Watchlist?
