the momentum plus the upcoming news flow is very likely to propel this higher.
we know on Friday a broker upgraded target price from 4.50 to 6.50 which is the equivalent to 104 Aud. The same poster included the CF note from September
Interestingly in Sept Cantor Fitzerald reduce their target form 7.50 to 6 dollars on the delay in signing contracts. since then we have seen the contracts delivered with more to come. one would expect CF to reverse target back to 7.50 or 134. One these valuations it seems that another 2-3 contracts of medium size could have target price at 2 dollars plus
This is what I predict will happen, as the stock tracks higher, off news flow the broker targets will also be continually revised up. It is very rare that you see a broker with a price target 3 -4 times current stock price. so when UNIS is 5.00 the targets will be 7. Of they go to 7.00 the targets will be upgraded to 8.50 etc etc. the reasons offcourse will be the additional contracts, the additional revenue. the successful execution of the strategy . the pipeline etc etc. my point is the broker reports are essentially allowing zero for additional contract wins and associated revenue , as they happen the SP and target price will move up Happens all the time. The difference is we have an opportunity as LT investors to take into account current contracts but also risk a percentage of contracts being finalised. these gives us a more realistic view of the companies value 6 months and 12 months out
UNS Price at posting:
72.5¢ Sentiment: LT Buy Disclosure: Held
