NIce buying. Morgans reports as undervalued today.Morgans rates MSV as Add (1)-
And now for that eternally present, but never resolved riddle: whyare Mitchell Services shares constantly trading at a noticeable discountvis-a-vis peers?
Stockbroker Morgans adds this is once again the case, despite a"very strong" looking outlook for the drilling services provider. Thebroker also points out there might be a suitor appearing at some stage, giventhat steep valuation discount.
Rating: Speculative Buy, with M&A upside potential. Target$0.66.
And now for that question: why the persistent discount?
Morgans offers a few possible explanations, beginning with thecompany's relatively smaller size while low liquidity likelyrestricts institutional investor interest. But also: the SMSdispute possibly raised concerns about potential inter-relatedtransactions.
However, company management's recent preferencing of growthover shareholder returns aligns with the motivations of micro-cap investors andis a less plausible driver of the discount, in Morgans' view.
Target price is $0.66 Current Price is $0.37 Difference: $0.29
If MSV meets the Morgans target it will returnapproximately 78% (excluding dividends, fees andcharges).
NIce buying. Morgans reports as undervalued today.Morgans rates...
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Last
39.5¢ |
Change
-0.010(2.47%) |
Mkt cap ! $84.36M | |||
| Open | High | Low | Value | Volume |
| 40.5¢ | 40.5¢ | 39.5¢ | $85.20K | 213.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 51194 | 39.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 40.5¢ | 125000 | 1 |
View Market Depth
| Last trade - 15.57pm 17/06/2024 (20 minute delay) ? |
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Last
39.5¢ |
Change
-0.010 ( 2.57 %) |
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| Open | High | Low | Volume | ||
| 40.0¢ | 40.0¢ | 39.5¢ | 40200 | ||
| Last updated 15.57pm 17/06/2024 ? | |||||
| MSV (ASX) Chart |
