DISA started at 'buy' by KGI with 2 cents target on Walmart win

SINGAPORE (June 25): KGI Securities is initiating coverage on DISA, the company formerly known as Equation Corp, with a “buy” recommendation and a target price of 2 cents.

This is based on a DCF (discounted cash flow) valuation with WACC (weighted average cost of capital) at 14.5% and terminal growth rate at 0%, implying a 2021F P/E of 23.9x.

In a Friday report, KGI analyst Marc Tan says given that Walmart is now using DISA’s technology, "we believe the time is ripe for the firm to ramp up its market penetration".

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