The UK regulator has thrown a spanner in the works of Bravura Solutions’ competitor FNZ’s acquisition of GBST, declaring the two entities must continue to operate separately.
Macquarie believes this will provide an impediment to prospective FNZ clients given lack of clarity and thus an advantage for Bravura, which has reaffirmed guidance for organic operations and greater contribution from acquisitions.
This implies no real impact from Brexit uncertainty at this stage, the broker suggests, as the company continues to enjoy a healthy sales pipeline from new and existing clients. Target rises to $5.80 from $5.55, Outperform retained.
Sector: Software & Services.
Target price is $5.80.Current Price is $5.01. Difference: $0.79 – (brackets indicate current price is over target). If BVS meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).