Redbubble's largely pre-announced December-half result met Morgans forecasts, competition hurting revenue and margins. Management reiterated guidance for negative low-single digit earnings (EBITDA) margins.

The broker spies no relief, expecting continued competition and investment in marketing and customer-retention will continue to erode margins.

Target price falls to $2.79 from $3.59. Add rating retained on valuation.

Sector: Software & Services.

Target price is $2.79.Current Price is $1.76. Difference: $1.03 - (brackets indicate current price is over target). If RBL meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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