After years of weak customer demand Morgans believes the company may have turned the corner. Guidance is 15% ahead of the broker’s expectations and FY15 profit should be up 35-45%.
The upgrade to guidance was driven by a number of positive events and the broker will fine tune its forecasts at the results but in the interim has increased FY15 and FY16 assumptions by 19%.
The broker retains an Add rating and raises the target to 97c from 82c.
Sector: Software & Services.
Target price is $0.97.Current Price is $0.96. Difference: $0.01 – (brackets indicate current price is over target). If DTL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).