Shine Justice's FY21 underlying earnings were slightly ahead of Morgans' expectations and a 9.8% increase on the previous comparable period, totaling $56.2m. 

While there remains some risk around the resolution of the Mesh class action case, Morgans notes a successful determination will put Shine Justice in a strong capital position to pursue acquisitions. 

The company is guiding underlying earnings growth in the low double digits for FY22 and the broker updates the FY22 underlying earnings forecast by 7.6%, assuming 11.4% growth. 

The Add rating is retained and the target price increases to $1.55 from $1.47.

Sector: Consumer Services.

Target price is $1.47.Current Price is $1.15. Difference: $0.32 - (brackets indicate current price is over target). If SHJ meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena