RCW – Morgans rates the stock as Add

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The company has made two acquisitions which extend its security control software. The deal will be funded via scrip, although an additional $4m in fresh equity was also raised to fund working capital.

The strategic rationale is that the acquisition of Offsite Vision extends the company’s expertise to tracking the egress of high-value assets or people via radio frequency identification tags.

The company has also acquired Ticto, which will allow it to move from point-in-time static access control to continuous presence control.

Add rating maintained. Target is $0.38, reduced from $0.46.

Sector: Software & Services.

Target price is $0.38.Current Price is $0.31. Difference: $0.07 – (brackets indicate current price is over target). If RCW meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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