SG Fleet Group's FY20 result was mostly in-line with Morgan Stanley with net profit missing the forecast by -3%. At 118%, cash conversion is considered robust.

The group did not provide any FY21 guidance but the broker considers the outlook to be improving. The broker remains concerned about the uncertainty surrounding the lockdowns given the group's earnings are more leveraged to the macro backdrop than peers.  

Equal-weight rating maintained. Target is reduced to $2.00 from $2.45. Industry view: In Line.

Sector: Commercial & Professional Services.

Target price is $2.00.Current Price is $1.62. Difference: $0.38 - (brackets indicate current price is over target). If SGF meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena