GBST Holding’s full-year result fell -6% short of the broker’s estimate and towards the bottom end of guidance, due to poor results in international and Australian capital markets, a factor outside the company’s control.
The broker reduces its capital markets’ estimates for FY19 but retains its belief in GBST’s progress in developing a global franchise as a supplier of core systems to large banks and wealth managers.
Morgans expects weakness may persist in the near term but retains an Add recommendation. Target price falls to $3.06 from $3.90.
Sector: Software & Services.
Target price is $3.06.Current Price is $2.06. Difference: $1.00 – (brackets indicate current price is over target). If GBT meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).