FY21 operating metrics were pre-released and the main surprise for Morgans was the increase in the cost base in the second half. The EBITDA loss was also greater than expected and second half operating expenditure almost doubled.
BikeExchange has invested heavily in building out its senior management team and the platform. The business is entering a heavy investment phase yet the broker considers it well capitalised to undertake the expenditure.
Speculative Buy rating maintained with the target dipping to $0.30 from $0.31.
Sector: Technology Hardware & Equipment.
Target price is $0.30.Current Price is $0.19. Difference: $0.11 – (brackets indicate current price is over target). If BEX meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges – negative figures indicate an expected loss).
