RE: Target 1.50 RBC maintained outpreform and moved it from $5 to $4 with the following comments;
50% Dividend Reduction Impacts Value Proposition
Our View: The substantial dividend cut has clearly impacted investor
sentiment and CHR's investment proposition, in our view. However, there
has been no change to CHR's ability to drive significant free cash flow
and at current valuations, we believe the worse case scenario in the
benchmarking exercise is being priced-in. As such, we believe the risk to
reward remains attractive and we continue to rate the shares Outperform.