The first quarter report points to a slower pace of revenue growth than Morgans had expected. The broker lowers the revenue forecast to to be more in-line with the current cash receipt run rate. Speculative Buy rating and the target price is decreased to $0.66 from $0.67.
More positively, the analyst feels the handful of small orders the company has with tier one customers could lead to much larger orders in the second half. It’s also considered R&D activity continues to build a long term growth runway.
Target price is $0.66.Current Price is $0.29. Difference: $0.37 – (brackets indicate current price is over target). If SRJ meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges – negative figures indicate an expected loss).
