Shine Justice posted 15% earnings growth in line with expectations. The 2.5c dividend is up 25% year on year. Cash flow was weak, the broker notes, on a combination of receipts timing, and investment significant fee-earning headcount growth.

FY guidance has been retained as "low double-digit" growth.

Resolution of the Mesh class action case has been an important milestone, the broker notes Cash timing is still unknown, be it upfront or over some five years, however certainty on the balance sheet will allow Shine to look at acquisition opportunities.

On lower assumed gross operating cash flow in the second half, target falls to $1.47 from $1.55, Add retained.

Sector: Consumer Services.

Target price is $1.47.Current Price is $1.31. Difference: $0.16 - (brackets indicate current price is over target). If SHJ meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena