SomnoMed's 2Q cash flow report revealed weak trading in December due to logistics issues in North America and lower-priced competition, explains Morgans.

While FY23 earnings (EBITDA) guidance was maintained, sales growth of 15-20% is now expected, down from the previously expected greater than 20%. 

The broker moderates its FY23 forecast to meet the lower end of guidance and the target falls to $1.76 from $1.88. Add.

Sector: Health Care Equipment & Services.

Target price is $1.76.Current Price is $1.29. Difference: $0.47 - (brackets indicate current price is over target). If SOM meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena