Q: Can you me give your read on this company. It has had quite a fall and, if I am not mistaken, it initial IPO. Analysts are forecasting quite lofty price targets, however the earning forecast don't seem to be there. I do have a very small hold and I trying to decide if this would be a rare occasion where the 5i team would endorse an "average down" purchase.
Much appreciate.
Much appreciate.
5i Research Answer:
We would not want to average down here. While it still has a very strong balance sheet, revenue is set to decline sharply, it has now disappointed investors for a while, and we do not like the negative momentum. Profits have turned to losses and the outlook is muted at best.