The $85m capital raising, including a $75m institutional placement and $15m share purchase plan, may be considered opportunistic but UBS assesses it provides scope for potential acquisitions.
The broker likes the business model, which has a degree of resilience, but recognises automotive original equipment manufacturers are experiencing extreme difficulty which could provide some headwinds over the short term.
The broker considers the stock attractive for a company with an ability to deliver earnings growth of over 20%. Buy rating maintained. Target is reduced to $2.05 from $2.40.
Sector: Software & Services.
Target price is $2.05.Current Price is $1.55. Difference: $0.50 – (brackets indicate current price is over target). If IFM meets the UBS target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
