Morgan Stanley believes operating leverage will be the focus at the first half result in February. The broker assumes no margin improvement and envisages downside risk ahead of the result as expectations are revised.

Most recently, FY19 earnings (EBIT) margins declined -250 basis points in the first half and -201 basis points in the second half.

Equal-weight. Target is $11.80. Industry view is Cautious.

Sector: Commercial & Professional Services.

Target price is $11.80.Current Price is $12.14. Difference: ($0.34) - (brackets indicate current price is over target). If BXB meets the Morgan Stanley target it will return approximately -3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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