Now that the CEO has (suddenly, unexpectedly) left, EML Payments internally appointed Emma Shand MD and CEO effective immediately.
UBS recognises the elevated risk profile, but also believes the increased risk is now priced-in. Buy rating retained, with the added caveat that investors will need to get comfortable again, given the leadership change.
The target price had been cut to $2.10 from $2.30 only five days ago. EML Payments is scheduled to report FY22 financials on August 22. UBS is keen to receive further clarification from the company.
Sector: Software & Services.
Target price is $2.10.Current Price is $0.97. Difference: $1.13 – (brackets indicate current price is over target). If EML meets the UBS target it will return approximately 54% (excluding dividends, fees and charges – negative figures indicate an expected loss).
