Following a trading update by Superloop, Morgans assesses strong organic sales momentum in the core business, which is continuing to gather pace. The Add rating and $1.37 target price are retained.
The company intends to acquire the Melbourne-based white label platform and managed service company Acurus for -$15m upfront, plus an earn out capped at -$20m. The analyst expects the transaction will be accretive in FY23.
Sector: Telecommunication Services.
Target price is $1.37.Current Price is $0.82. Difference: $0.55 – (brackets indicate current price is over target). If SLC meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).
