Following a 2Q performance update by Frontier Digital Ventures, Morgans lowers its FY22-23 EPS forecasts by -14% and -15% (off a low base) after incorporating a mild softening for future earnings (EBITDA) margins. The target falls to $1.41 from $1.56.

The broker highlights robust 2Q revenue growth rates and the attainment of positive operating net cashflow for the portfolio, which is a key milestone. The Add rating is maintained.

Sector: Software & Services.

Target price is $1.41.Current Price is $0.97. Difference: $0.44 - (brackets indicate current price is over target). If FDV meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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