UBS believes new listings are now on track to return to positive growth in the second half. FY20 earnings forecasts are unchanged but FY21-22 are increased by 11-12% on higher assumed listings growth.
However, even on these expectations, the stock now trades above the broker’s discounted cash flow valuation and the rating is downgraded to Sell from Neutral. Target is raised to $3.50 from $3.20.
Sector: Software & Services.
Target price is $3.50.Current Price is $4.00. Difference: ($0.50) – (brackets indicate current price is over target). If DHG meets the UBS target it will return approximately -14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
