I have 3000 shares in Flexigroup (FXL) and they dropped because of information they gave – will they come back at some stage?
A: Thanks for the question.
Flexigroup (FXL) fell approximately 16% following the shock departure of its CEO. It has rallied back a little following the release of its second-half report.
Two brokers have also upgraded their ratings – Citi to Buy from Neutral, and UBS to Neutral from Sell.
According to FN Arena, the consensus target price is now $3.03 and sentiment is fairly positive at +0.5 (scale -1.0 is most negative, to +1.0 most positive).
It is a high yielder, guidance for FY 16 is tight, and barring any blow out in bad debts – looks reasonably priced. This being the case, a rally back to $3.00 is not out of the question.
