Beacon Lighting has upgraded guidance amid strong sales momentum and now expects net profit to be $19m. This is 13% ahead of Morgans' forecasts and implies 17% growth in FY20.

The broker lifts FY20-22 forecasts by 10-13%. Sales and earnings momentum are expected to be favourable throughout the first half of FY21, particularly in light of the acceleration experienced at the end of June.

The broker retains an Add rating and raises the target to $1.40 from $1.35.

Sector: Retailing.

Target price is $1.40.Current Price is $1.13. Difference: $0.27 - (brackets indicate current price is over target). If BLX meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena