As KPI’s were re-released, Morgans found fourth quarter results were largely as expected. The broker retains its Speculative Buy rating and $0.16 target price, after making no changes to medium-term forecasts.
Key points for the analyst included an impressive 7 times year-on-year and 50% quarter-on-quarter increase in International annualised recurring revenue. There was also considered to be tight cost control.
Morgans anticipates sales growth will be muted over the next six months as priority is being given to de-bottlenecking technical obstacles to customer adoption/sales acceleration. Sales growth is expected to re-accelerate thereafter.
Sector: Software & Services.
Target price is $0.16.Current Price is $0.07. Difference: $0.09 – (brackets indicate current price is over target). If FCT meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges – negative figures indicate an expected loss).
