First half results were strong and ahead of Morgans’ expectations, with North America standing out. The company continues to retain a dominant position in the North American market with strong growth in platform sales and install gaming operations.
Margins did contract in the digital business, as expected. Given continued weakness in the Australian dollar relative to the US dollar Morgans also updates currency forecasts. Add rating maintained. Target rises to $31.95 from $30.50.
Sector: Consumer Services.
Target price is $31.95.Current Price is $28.59. Difference: $3.36 – (brackets indicate current price is over target). If ALL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).