DHG - Morgan Stanley rates the stock as Overweight
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The resignation of CEO Anthony Catalano is an incremental negative for the shares and a surprise to Morgan Stanley, coming less than three months after the company's IPO. The departure creates uncertainty over strategy and growth aspirations, the broker acknowledges.
Separately, the company has confirmed first half revenue growth of 13% including digital revenue growth of 22%, which is in line with the broker's expectations.
Overweight rating and a $4.50 target. Industry View is Attractive.
Sector: Software & Services.
Target price is $4.50.Current Price is $2.75. Difference: $1.75 - (brackets indicate current price is over target). If DHG meets the Morgan Stanley target it will return approximately 39% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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