Morgans sees upside from PTB Group's intentions to buy back 4% of the shares outstanding, despite increasing the FY21 net debt forecast from the cash spent.

The broker believes the business is undervalued and thinks the growth potential of the US business is not being priced in by the market at the moment. The Add rating is maintained and the target is increased slightly to $0.89 from $0.88.

Sector: Capital Goods.

Target price is $0.89.Current Price is $0.73. Difference: $0.16 - (brackets indicate current price is over target). If PTB meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena