Data#3 expects to report FY21 profit (PBT) of $36.8m, which is circa -8% below Morgans forecast for $39.9m. This was due to timing delays caused by global chip shortages, which caused delivery delays to customers in the fourth quarter, explains the analyst.
The broker reduces FY21 and FY22 EPS forecasts by -8% and -9%, though this has been more than offset by rolling the valuation forward by twelve months. Morgans lifts its target price to $5.90 from $5.75 and maintains its Hold rating.
Forward indicators suggest these chip delays are unlikely be resolved in the next 12-18 months, notes the analyst. Consequently, a catchup in FY22 is not expected.
Sector: Software & Services.
Target price is $5.90.Current Price is $5.33. Difference: $0.57 – (brackets indicate current price is over target). If DTL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
