Following in-line FY21 results from Iress, Morgans points out EPS growth from previously stated strategies has been elusive so far. While an inflection point may be coming in FY23, more evidence is required and the Hold rating is maintained.
Management re-stated its goal to deliver $120m profit in FY25 and noted the sale of the mortgage sales and originations (MSO) business is progressing well. The target price falls to $11.75 from $13.75.
Sector: Software & Services.
Target price is $11.75.Current Price is $11.05. Difference: $0.70 – (brackets indicate current price is over target). If IRE meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
