PWR Holdings' result was slightly above Morgans expectations.

The main drivers were British Pound sales -10%, US sales up 14% and Australian dollar sales up 13%. Also a number of cost initiatives assisted earnings along with government assistance, in both Australia and the United States, notes the broker.

The result was driven by very strong sales growth in Emerging Technologies up 62% and original equipment manufacturer (OEM) up 60%.

No formal guidance was provided, but management said the outlook for the remainder of FY21 looks positive, with the key unknown of covid-19.

A dividend of 5.9cps was declared, which was lower than the 7.7cps forecast by the broker.

Morgans remain confident in the medium-term growth outlook, despite a tough 2H20.

The Add rating is maintained. The target price is increased to $5.10 from $4.70.

Sector: Automobiles & Components.

Target price is $5.10.Current Price is $4.40. Difference: $0.70 - (brackets indicate current price is over target). If PWH meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena