First half results were "acceptable" and slightly ahead of expectations, but Morgans notes the company still lacks the scale required to deliver outstanding returns.

Praemium trades on high multiples of earnings and thus needs to maintain a high level of revenue growth to sustain the current share price, the broker points out.

As the stock is trading at a discount to valuation an Add rating is maintained. Target is reduced to $0.58 from $0.59.

Sector: Software & Services.

Target price is $0.58.Current Price is $0.49. Difference: $0.09 - (brackets indicate current price is over target). If PPS meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena