STW Comms upgraded on acquisition

Our valuation on STW Communications Group has been lifted following its acquisition of Active Display Group.

Our valuation on advertising and marketing group STW Communications Group (SGN) has been lifted following the group's decision to buy Australia's largest in-store retail marketing company.

The $35.2 million deal for Active Display Group will add around to $100 million to the group's annual revenue from 2014-15 onwards.

In-store marketing is a fragmented but fast growing segment and the purchase will give STW greater cross-selling opportunities.

We have updated our model to account for the acquisition and adjusted our price target on the stock. You can read more about this by clicking here.

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