The company has announced a capital raising of up to $60m, a little earlier than UBS anticipated. Still, the broker believes this aligns with the company’s strategy and further de-risks future growth.
The company posted a strong first half result which highlights the operating leverage potential in the business, UBS notes.
A Buy rating is reiterated. Target is reduced to $4.55 from $4.90.
Sector: Software & Services.
Target price is $4.55.Current Price is $4.06. Difference: $0.49 – (brackets indicate current price is over target). If MP1 meets the UBS target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
