OPC – Morgans rates the stock as Hold

Telco services company Uniti Group ((UWL)) has offered OptiComm shareholders $5.10 in cash and/or scrip in a full takeover bid. The board has recommended shareholders accept the bid unless a better one comes along. Given directors and associates own around 50% of the company the broker suggests a takeover is likely.

The broker is a little peeved as it was looking forward to being part of a “longer term valuation creation journey”, but given the stock only listed last August, at $2.00, the broker is not unhappy at $5.10 plus dividends. Target rises to that figure from $4.54 to match the offer. Hold retained in case a better bid does come along.

Sector: Telecommunication Services.

Target price is $5.10.Current Price is $5.30. Difference: ($0.20) – (brackets indicate current price is over target). If OPC meets the Morgans target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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