ATA – Morgans rates the stock as Hold

Atturra has upgraded underlying earnings (EBITDA) guidance by around 13%, and announced the acquisition of Perth-based Hayes, an OpenText/ECM specialist for $12m.

Morgans attributes the upgraded guidance to stronger results in March and April and less impact from the Federal election than originally envisaged. A one-off gain from completing a project under budget in the 4Q also contributed.

Following the acquisition, the broker removes a 10cps premium in the target price for future acquistions and after upgrading earnings estimates (offset by downgraded peer multiples), the target falls to $0.72 from $0.78. The rating is downgraded to Hold from Add on valuation.

Sector: Software & Services.


Target price is $0.72.Current Price is $0.72. Difference: $0.00 – (brackets indicate current price is over target). If ATA meets the Morgans target it will return approximately 0% (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 →