BellPotters have further upgraded the target price to 2.75....

BellPotters have further upgraded the target price to 2.75.

dacel recently released an investor presentation
which was light on figures but heavy
on market trends and drivers. There were two key takeaways for us from the
presentation. First, the outlook for the key areas of the market where Adacel
competes
–
ATC simulation systems, ATM automation systems and as
sociated
services for both
–
is brighter than we previously thought.
Second, the competitive
position of Adacel in these markets is stronger than we thought as past performance
and qualification counts for more than we realised. Put together, these key t
akeaways
give us increased confidence in the future performance of Adacel and make us think
that double digit earnings growth is well achievable for the medium term if not longer.