GRB has finalised the acquisition of Matso’s and announced a rebranding of its marketing framework. Both will help maintain the strongly positive strategic momentum, and accelerate the move towards a targeted $1 EBITDA per litre. We have reviewed our forecasts post this update and with the additional detail in the FY18 results. Changes are relatively minor, and we still assume this target is achievable by FY21. Our target price, which reflects a ~12.3x FY20 EBITDA multiple, of $0.128 (prior $0.123), is close to the current share price. It does not take into account potential corporate interest, which should be considered a possibility. Our HOLD call (prior BUY) is based on valuation grounds, and we remain impressed with GRB’s ongoing craft beer strategy execution.
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