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FCL – Macquarie rates the stock as Outperform

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.

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).

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