Catapult Group International recently provided an update on trading conditions. This showed the net cash balance had improved by US$10.1m from 30 June. A loan drawn at the beginning of the pandemic has been repaid, which shows increased confidence in the outlook, in the view of Morgans.
The broker expects considerable cross-sell and up-sell potential, along with new client additions will return the company to robust growth levels.
Morgans moves forecasts to a 31 March year-end and changes to US$ reporting. The Add rating is unchanged and the target is increased to A$2.45 (US$1.79) from $2.44.
Sector: Technology Hardware & Equipment.
Target price is $2.45.Current Price is $2.10. Difference: $0.35 – (brackets indicate current price is over target). If CAT meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
