Australia's Alcidion slips after Bell Potter downgrades to 'hold'

Alcidion

03/09/2024 03:43

** Shares of Alcidion Group  ALC.AX  slip as much as 5.7% to
A$0.066
    ** Bell Potter cuts its price target for the healthcare tech
co to A$0.07 from A$0.08, downgrades rating to "hold" from
"sell" 
    ** Brokerage also decreases its near-term revenue forecasts
to better reflect the now-disclosed starting contracted revenue
for FY25
    ** On Aug. 29, co revealed A$28.0 mln ($18.97 mln) of
contracted and renewal revenue for FY25 as at August, a near A$6
mln stepdown from last year 
    ** Brokerage now forecasts FY25 revenue for co of A$37 mln,
a 20% drop from its previous forecast of A$46.1 mln 
    ** "We are now more cautious considering the reduced
starting revenue in FY25 and modest cash balance of A$11.8 mln
with lumpy quarterly cashflows that are historically weaker in
Q1-Q2" - brokerage 
    ** Stock down ~7% YTD, as of last close
    




($1 = 1.4760 Australian dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))