KGI Research analyst Kenny Tan has initiated “neutral” on IT equipment seller Procurri Corp with a target price of 38 cents, representing a 12% upside to the counter’s share price of 34 cents as at July 22.

The target price is derived from Procurri’s “FY2022 EV/EBITDA as the valuation base with a seven times peg”, says Tan in a July 22 report.

“We think the seven times peg is a fair discount from precedent transaction multiples of privately held peers, leaving the privatisation door open should the opportunity arise again in the future,” he writes.

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