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TCM [MARKET PERFORM +5.7%] - Q4 2018 and 2019 earnings likely hit by Sears provision - Update

Company Research

05 Dec 2018

We maintain our MARKET PERFORM rating on TCM with a projected TSR of 5.7%, despite raising our target price (TP) 16.8%, as TCM’s stock price has risen 13.0% in the last three months. Our revised TP reflects an increase in our recurring NPAT 2017-2023F CAGR forecast to 9.5% from 8.5% to factor in higher-than-expected revenue growth and margin expansion in 9M 2018, as well as the positive impact of rolling over our DCF and increasing our DCF valuation weighting to 100% from 80%.
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