Morgan Stanley rates GTK as Equal-weight

Published: 2026-05-06 20:31:08 ET MS

Published on 05/06/2026 at 08:31 pm EDT

Gentrack Group has materially downgraded guidance ahead of its first half results.

The range of outcomes remains wide, Morgan Stanley notes, and material new contracts and G2 traction underpin a compelling bull case, but contract losses, lack of reference customers, and pipeline uncertainty suggest scope for further deleverage.

Morgan Stanley cuts earnings estimates -66%, -51% and 48% across FY26-28 and its price target to $3.35 from $7.70. The broker continues to see diverging scenarios, with ongoing questions around earnings durability, and competitive pressures.

Equal-weight retained. Industry view: In Line.

Sector: Software & Services.

Target price is $3.35.Current Price is $3.08. Difference: $0.27 - (brackets indicate current price is over target). If GTK meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).