The company has undertaken a lot in the last 18 months, Macquarie observes, including mergers and acquisitions of Amcom, CallPlus, M2 and NextGen. This is occurred against the backdrop of a rapidly evolving Australian fixed line market due to the roll out of the NBN.
Macquarie initiates coverage with an Outperform rating and $5.30 target, and will be looking for confirmation that the outlook has not deteriorated since the AGM and that Vocus remains on track to achieve its synergy targets.
Sector: Telecommunication Services.
Target price is $5.30.Current Price is $3.97. Difference: $1.33 – (brackets indicate current price is over target). If VOC meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).