Thalassa Holdings - broker upgrades
Revised earnings estimates prudently allow for an increase in the cost of sales as a percentage of revenue to 63% (from 50%) due to the likelihood of lower margin contracts using new technology. They also assume an increase in administration expenses and tax rate.
Revised estimates look easily achievable to us, although the execution risk for a small business remains.
Despite the recent boost to the share price, the shares still only trade broadly on…
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