First half results from APM Human Services International were largely in line with guidance and Morgan Stanley expects the stock will trade on the likelihood of a deal from a revised $2/share private equity bid, as opposed to fundamentals.

The broker remains concerned about elevated debt levels although notes cash conversion is strong at 95%. Equal-weight rating maintained along with a $1.22 target. Industry view is In-Line.

Sector: Commercial Services & Supplies.

Target price is $1.22.Current Price is $1.60. Difference: ($0.38) - (brackets indicate current price is over target). If APM meets the Morgan Stanley target it will return approximately -31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena