Morgans reduces forecasts to reflect near-term challenges being caused by changes to Google search engine algorithms. The broker also includes forecasts for the TeePublic business that was recently acquired.
Preliminary FY18 financials showed strong growth in revenue and gross profit, in line with expectations. While forecasts are being downgraded, Morgans lifts the target to $1.91 from $1.66 as a new starting year is rolled forward. The target is now set by DCF valuation alone.