OTW – Morgans rates the stock as Hold

After conducting due diligence, Aussie Broadband ((ABB)) has offered $5.75 in cash or 1.15 Aussie Broadband shares for Over The Wire Holdings. This assumes a $5 Aussie Broadband share price or a combination of cash and shares, highlights Morgans.

The broker notes Aussie Broadband shares closed yesterday at $5.20, which implies slightly more upside for Over The Wire Holdings shareholders. Additionally, if shareholders elect share consideration,it’s thought they may participate in some synergy-related upside.

Morgans retains its Hold rating and $5.75 target price.

Sector: Software & Services.

 

Target price is $5.75.Current Price is $5.69. Difference: $0.06 – (brackets indicate current price is over target). If OTW meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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