BofA slashes Agora PT, keeps 'buy' rating on growth potential
25/11/2022 14:26
** BofA Global research slashes PT for software services
provider Agora Inc API.O to $5.40 from $34.30, maintains "buy"
rating
** API dropped 20% on Tuesday after co reported a
bigger-than-expected loss and lowered its FY 2022 revenue
forecast urn:newsml:reuters.com:*:nGNX7yrhzm
** Co faces macro economic challenges -restrictive
regulations in markets like China, inflation and other factors
affecting client ability to raise funds and the strengthening of
U.S. dollar -BofA
** The brokerage reiterates "buy" rating, citing longer-term
growth potential of the company's real-time engagement (RTE)
business keeping in mind the launch of API's "next generation of
RTE" SDK 4.0 in Oct. 2022
** Five of seven brokerages rate the stock "buy" or higher
and two rate it "hold"; their median PT is $4.50 - Refinitiv
** Up to last close, stock had fallen 82.3% YTD
(Reporting by Sourasis Bose in Bengaluru)
((Sourasis.bose@thomsonreuters.com))