The recently listed Mantra Group (MTR) is a leading accommodation operator in Australia and New Zealand with an expanding presence in Indonesia
The recently listed Mantra Group (MTR) is a leading accommodation operator in Australia and New Zealand with an expanding presence in Indonesia. Our Research Team have added MTR to our small cap stock preferences this month for the following reasons: 1) The company is leveraged to improving domestic leisure and business travel demand through its Resorts and CBD businesses, as well as strong international inbound travel to Australia from Asia. 2) MTR offers investors a solid earnings growth profile, strong FCF and an attractive fully franked dividend yield. 3) We expect MTR will re-rate toward our share price target as it delivers on its FY15 forecasts and makes further accretive acquisitions. We retain our Add recommendation and share price target of A$2.45. Visit the Morgans blog for all our small cap preferences this month: (VIEW LINK)
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