Down 1% in a month, what’s next for the Dicker Data share price?

A young woman with glasses holds a pencil to her lips as she is surrounded by the reflection of data as though she is being photographed through a glass screen project with digital data.A young woman with glasses holds a pencil to her lips as she is surrounded by the reflection of data as though she is being photographed through a glass screen project with digital data.

The Dicker Data Ltd (ASX: DDR) share price has descended slightly in the past month, but could it go ahead in the future?

The company’s share price has lost 1.41% in the last month and is currently trading at $11.19. In today’s trading, the company’s share price closed 2.01% lower.

So what is the outlook for the Dicker Data share price?

What is ahead?

Dicker Data is an Australian technology company that supplies software, cloud, and computer hardware products to major international companies.

Morgan Stanley analysts have recently placed a $16 price target on the company’s shares and maintained an overweight rating. At its current level, this represents nearly 43% upside for the Dicker Data share price.

Further, Morgan Stanley is predicting Dicker Data could provide a fully franked dividend of 48.5 cents in FY 2023. In FY 2022, the broker forecasts a 41.4 cent dividend.

Meanwhile, Airlie Funds Management analysts have recently predicted Dicker Data’s prospects “should remain strong”. Portfolio manager Matt Williams said:

No matter the upcoming economic conditions, we think the path to digitisation won’t be affected… [O]ver the past seven years, sales and profits have compounded annually at 16% and 20% respectively.

Dicker Data recently updated the market on its unaudited results for H1 2022. According to the report, revenue growth is up 36% on the prior corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) has also grown 20% in the same timeframe from $51 million to $61 million.

The company will hold a webcast of its F22 half-year results on 30 August.

Share price snapshot

The Dicker Data share price slumped nearly more than 24% in the year to date but lost just 0.53% in the past year.

For perspective, the S&P/ASX All Technology Index (ASX: XTX) has shed nearly 26% in a year and almost 29% year to date.

Dicker Data has a market capitalisation of more than $1.9 billion based on the current share price.

The post Down 1% in a month, what’s next for the Dicker Data share price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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