Credit Suisse believes the company needs a payback on its investments. FY19 earnings guidance was reduced to net profit of $87-89m recently and the company has acknowledged a challenging June quarter.
Soft market conditions and increased competition in the UK have persisted to a larger extent than previously anticipated. Write-downs in the UK also raise concerns for the broker about the quality of the business.
Outperform rating maintained as Credit Suisse still believes the stock offers value. Target is reduced to $14.00 from $14.45.
Sector: Commercial & Professional Services.
Target price is $14.00.Current Price is $12.15. Difference: $1.85 – (brackets indicate current price is over target). If MMS meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
