Atturra has upgraded underlying earnings (EBITDA) guidance by around 13%, and announced the acquisition of Perth-based Hayes, an OpenText/ECM specialist for $12m.
Morgans attributes the upgraded guidance to stronger results in March and April and less impact from the Federal election than originally envisaged. A one-off gain from completing a project under budget in the 4Q also contributed.
Following the acquisition, the broker removes a 10cps premium in the target price for future acquistions and after upgrading earnings estimates (offset by downgraded peer multiples), the target falls to $0.72 from $0.78. The rating is downgraded to Hold from Add on valuation.
Sector: Software & Services.
Target price is $0.72.Current Price is $0.72. Difference: $0.00 – (brackets indicate current price is over target). If ATA meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
