The stock is trading at its highest multiples compared with historical averages. Morgans upgrades earnings forecasts for the next two years because of improved revenue and bad debt assumptions, based on recent trends.
However, the rating is downgraded to Hold from Add on valuation grounds. Target is raised to $46.00 from $33.11. The fact Tencent has taken a 5% stake in the company is an advantage, in the broker’s view, providing substantial options going forward.
Sector: Software & Services.
Target price is $46.00.Current Price is $47.41. Difference: ($1.41) – (brackets indicate current price is over target). If APT meets the Morgans target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).