In 2021, Frontier Digital Ventures fully acquired InfoCasas and Encuentra24. Now, the company has amended earn out consideration with the founders of these companies to equity in Frontier Digital Ventures rather than equity in Frontier Digital Ventures Latin America.

Due to share dilution from raising $8.5m via issuing additional shares at 40c, Morgans target for Frontier falls to 82c from 94c. 

The broker's EPS forecasts are raised by 1%-5% over the next couple of years, as near-term losses will be spread over a higher number of shares.

The Add rating is maintained.

Sector: Software & Services.

Target price is $0.82.Current Price is $0.37. Difference: $0.46 - (brackets indicate current price is over target). If FDV meets the Morgans target it will return approximately 55% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena