Morgan Stanley believes, while stock screens cheaply, a re-rating requires a resolution of the Woodford issue as well as more clarity regarding the recent trading update.
The broker hopes the results on August 29 will clarify how much of the recent earnings downgrade came from Brexit-related weakness in corporate activity.
Overweight rating retained. Target is reduced to $7.75 from $8.20. Industry view is In-Line.
Sector: Software & Services.
Target price is $7.75.Current Price is $5.02. Difference: $2.73 – (brackets indicate current price is over target). If LNK meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges – negative figures indicate an expected loss).