Morgan Stanley cut share price by 48% to $5.00/share The market...

Morgan Stanley cut share price by 48% to $5.00/share

The market did not care too much about the broker price targets earlier as they wanted some insight into the merged entity performance before making any decisions. In reality whilst the performance did not meet broker expectations (missed by 4-10%), the performance was in line with historical performance (c$100m EBITDA run-rate at the end of June 2016 plus $41m contribution from Nextgen. Arguably the performance could improve if the company hits its synergy targets and the full year contribution from Nextgen is factored in.

I suspect the investors will start building a base.

DYOR