RCW – Morgans rates the stock as Hold

Morgans retains its Hold rating and $0.39 target price after Rightcrowd’s fourth quarter annual recurring revenue (ARR) doubled year-on-year, marginally ahead of guidance. Revenue booked was a estimated to be a marginal miss.

The broker notes the year ended with $9.9m of cash, which equates to 2.7 quarters of funding based on the fourth quarter cash burn rate. While costs stepped up substantially, they were considered to include a number of one-offs costs.

The analyst anticipates operating expenses should drop by -$1m per annum, as the acquired Offsite Vision settles into the core business.

Sector: Software & Services.


Target price is $0.39.Current Price is $0.32. Difference: $0.07 – (brackets indicate current price is over target). If RCW meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).



About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →