UBS believe the stock is benefiting from potential earnings upgrades in FY19 from a rebound in energy verticals, as well as a multiple re-rating if investors obtain confidence that strong organic growth has returned.
Still, the broker concedes that, as the company has flagged, any recovery could be largely weighted to 2019. Rating is downgraded to Neutral from Buy. Target is raised to $6.00 from $5.80.
Sector: Telecommunication Services.
Target price is $6.00.Current Price is $6.06. Difference: ($0.06) – (brackets indicate current price is over target). If SDA meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).