Morgans downgrades its rating for RightCrowd to Hold from Speculative Buy after the 3Q was weaker than expected and management lowered FY22 guidance and withdrew its FY23 profit target. The broker’s target price tumbles to $0.12 from $0.26.
The broker’s house view is underweight the technology sector with a preference for profitable companies in the current macro environment. Nonetheless, there’s still considered to be potential for substantial medium-term value creation for RightCrowd.
Sector: Software & Services.
Target price is $0.12.Current Price is $0.06. Difference: $0.06 – (brackets indicate current price is over target). If RCW meets the Morgans target it will return approximately 50% (excluding dividends, fees and charges – negative figures indicate an expected loss).
