FY20 results were in line with the recent update and materially ahead of prospectus. Guidance is for revenue growth of 20% with 30% growth in subscription fees and Macquarie believes the company is positioned to deliver on its forecasts.
Importantly, if current utilisation levels are held throughout FY21, the broker calculates 15% upside to gross profit forecasts and 70% upside to EBITDA forecasts. Outperform retained. Target rises to $6.06 from $5.87.
Sector: Software & Services.
Target price is $6.06.Current Price is $5.53. Difference: $0.53 – (brackets indicate current price is over target). If FCL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
