IRE – Morgans rates the stock as Hold

Morgans estimates a sale price of around $230m, after Iress announced the intention to divest the UK Mortgage business, with the intention to “distribute” surplus capital.

Management reaffirmed guidance for 7-10% segment profit growth. As the first quarter segment profit (constant currency) was flat, it implies to the analyst that growth is expected to be second-half weighted.

The analyst makes no changes to forecasts. The target price lifts to $11.37 from $10.95 after a valuation roll forward.

Sector: Software & Services.


Target price is $11.37.Current Price is $12.71. Difference: ($1.34) – (brackets indicate current price is over target). If IRE meets the Morgans target it will return approximately -12% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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