The company has acquired QuantHouse for EUR38.9m, to be funded by debt. The business is expected to incur a minor loss in 2019 but should be accretive to earnings in FY20.
While the company’s high visibility on earnings is likely to be considered favourably, Macquarie believes, at current valuations levels, there is limited upside.
Neutral rating is maintained. Target rises 3.9% to $13.69.
Sector: Software & Services.
Target price is $13.69.Current Price is $13.04. Difference: $0.65 – (brackets indicate current price is over target). If IRE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).