The company has revised FY19 guidance to $7-8m from $13-18m previously, with the slippage attributed to transactions not occurring before balance sheet date. The company did not mention its prior FY20 operating earnings (EBITDA) guidance of $26-30m.
Morgans now expects this may require $10m in transactional earnings in order to be achieved. The company continues to monetise its APAC assets.
Morgans reduces FY19 forecasts and continues to envisage significant long-term upside upon sales execution. Add rating maintained. Target is reduced to $2.05 from $2.11.
Sector: Telecommunication Services.
Target price is $2.05.Current Price is $1.34. Difference: $0.71 – (brackets indicate current price is over target). If SLC meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges – negative figures indicate an expected loss).
