NXT – Morgan Stanley rates the stock as Overweight

On further review Morgan Stanley considers the bullishness around contracts outside of Sydney and recent transaction multiples are positive qualitative aspects of the latest results.

The broker assesses the stock is a differentiated asset which is exposed to long-term structural growth. Cash flow generation is predictable and growing.

Overweight maintained. In-Line industry view. Target is raised to $9.00 from $8.40.

Sector: Software & Services.

Target price is $9.00.Current Price is $7.60. Difference: $1.40 – (brackets indicate current price is over target). If NXT meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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