CAR – UBS rates the stock as Neutral

By Broker News | More Articles by Broker News

The company intends to exit its 50.1% interest in Stratton. UBS considers this a positive move as Stratton provided a minor financial contribution relative to the significant effort by management required to deal with the issues.

Strategic reasons for owning the business have also subsided. The identities of potential acquirers are unknown but the broker expects a trade buyer may be the most interested.

After the company’s guidance update the broker’s FY19-21 forecasts for net profit are broadly unchanged. UBS maintains a Neutral rating and $14 target.

Sector: Software & Services.

Target price is $14.00.Current Price is $13.69. Difference: $0.31 – (brackets indicate current price is over target). If CAR meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →