Damstra Holdings has announced the acquisition of workplace safety and compliance management company TIKS Solutions. Morgan Stanley notes the transaction was made for $18m, the price representing 4.4x FY21 revenue. 

The broker likes that the TIKS Solutions founder and CEO are to join the Damstra Holdings executive team, and notes the acquisition increases operational scale and enhances product. 

The Equal-weight rating is retained and the target price decreases to $1.10 from $1.25. Industry view: In-Line.

Sector: Software & Services.

Target price is $1.10.Current Price is $0.91. Difference: $0.19 - (brackets indicate current price is over target). If DTC meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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