Morgan Stanley sees potential tailwind for Australia's Dicker Data

Dicker Data

01/11/2022 03:43

** Morgan Stanley sees elevated growth rates to continue and
better incremental margins for Australia's Dicker Data  DDR.AX  
    ** The compute parts distributor posted a 30% rise in
nine-months revenue to A$2.24 billion ($1.44 billion), and
earnings before interest, tax, depreciation and amortisation of
A$92 mln, rising about 9% on pcp 
    ** Brokerage says post 3Q, it thinks the stock is tracking
above its CY22 revenue estimate of about A$3.01 bln     
    ** However, it also points out that DDR's growth potential
could be curtailed by supply constraints and higher costs, which
could affect stock's 2022 earnings per share 
    ** Morgan Stanley remains "Overweight" on stock rating, sets
price target to A$14.00/shr 
    ** Two of three analysts rate the stock "buy" or higher, one
"hold"; their median PT is A$14.50 – Refinitiv data
    ** Stock has fallen 27.8% this year, as of last close
($1 = 1.5526 Australian dollars)
 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))