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OCL: Index Additions Will Likely Leave Shares Vulnerable To Future De-Rating

Stiff Regulatory Hurdles And Fierce Global Competition Will Weaken Profitability

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OCL
AnalystLowTarget
Not Invested
Published 24 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 6.10%
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AnalystLowTarget's Fair Value
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1Y
0.7%
7D
-3.9%

Analysts have modestly raised their price target, pointing to improved revenue growth expectations and a slightly higher future valuation multiple, despite a marginal uptick in the discount rate and stable profit margin assumptions.

What's in the News

  • Objective Corporation Limited (ASX:OCL) is actively pursuing acquisitions as part of its long standing M&A strategy, targeting deals that align with the strategic mission of each business line (management comments)
  • Objective has been added to the S&P/ASX Small Ordinaries Index, increasing its visibility among small cap investors (index announcement)
  • Objective has also been included in the S&P/ASX 300 Index, signaling broader market recognition and potential benchmark driven demand for the shares (index announcement)

Valuation Changes

  • Fair Value has risen slightly from A$8.47 to A$8.98 per share, reflecting higher growth expectations.
  • The Discount Rate has increased marginally from 7.97 percent to 8.06 percent, implying a slightly higher required return.
  • The Revenue Growth assumption has risen from 7.55 percent to 8.46 percent, indicating stronger expectations for the top line.
  • The Net Profit Margin assumption is essentially unchanged, moving from 20.50 percent to 20.48 percent.
  • The future P/E multiple has increased from 32.8x to 34.1x, suggesting a slightly higher valuation being applied to projected earnings.

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Disclaimer

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