Objective Corporation Ltd (ASX: OCL)
Morgans is optimistic about Objective Corporation Ltd, a firm specializing in content, collaboration, and process management solutions for the public sector and regulated industries. They note the company’s solid recurring revenue, low churn rates, and strong positioning to capitalize on global public sector software investment growth. They suggest that Objective’s long-term revenue and margin growth could return in FY24.
Morgans has set a positive ‘add’ rating with a price target of $14.00 on the company’s shares, indicating an almost 13% potential upside for investors.
Superloop Ltd (ASX: SLC)
Superloop is considered a strong buy by Morgans in the telecommunications sector. The company’s substantial growth, low debt, and high free cash flow yield are particularly attractive. Despite the shares’ recent price increase, Morgans believes that the significant lift in earnings justifies the current valuations, and they maintain an ‘add’ rating with a $1.50 price target, suggesting around 12% upside potential in the next year.
Investment Insights:
- Objective Corporation Ltd’s strong growth prospects are underpinned by a move towards Streamlining workflow, improving security, and upgrading legacy IT infrastructures.
- Superloop stands out with impressive earnings growth and high free cash flow yield in the telco sector.
In conclusion, the stocks featured by Morgans offer interesting opportunities for investors, with projections of substantial growth and solid financials highlighting their potential for favorable returns.