Praemium's result was close to the broker in profit terms despite the December stock market meltdown denting revenues. In a tough environment, the company has begun to implement efficiency measures in the UK, and is optimistic about its new Universal Managed Account solution to be released in the second half.
The broker notes Praemium's SMA platform is widely regarded as one of the best around, but given an elevated PE a high level of revenue growth is required to sustain the stock price. Add and 87c target retained.
Sector: Software & Services.
Target price is $0.87.Current Price is $0.59. Difference: $0.28 - (brackets indicate current price is over target). If PPS meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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