Altium's annual forecast might be viewed negatively, Jefferies cuts PT

Altium

21/02/2022 20:19

** Brokerage Jefferies says Altium Ltd's  ALU.AX  forecast
for lower EBITDA margins due to temporary investment for FY22
implies that it is 4% below consensus 
    ** The guidance may be taken negatively, but it is a
temporary investment to ensure long-term growth. We believe that
ALU can have a significant presence in the enterprise market -
Jefferies      
    ** Altium on Monday posted a 37.7% rise in its half-yearly
profit to $22.9 mln, but flagged that its underlying EBITDA
margin for FY22 is expected be at the lower end of the 34-36%
range due to reinvestment into enterprise and cloud sales 
 urn:newsml:reuters.com:*:nASX210SMb
    ** Jefferies cuts PT on ALU to A$42.61 from A$44.61,
maintains a 'buy' rating on the stock 
    ** Downgrades Altium's FY22 and FY23 net profit after tax
estimates by 7.2% and 2.3%, respectively, to reflect the higher
costs  
    ** Seven of 12 analysts rate the stock 'buy' or higher, one
rates it 'hold' and four 'sell', their median PT is A$37.08 -
Refinitiv Eikon 

 (Reporting by Tejaswi Marthi in Bengaluru; Editing by Howard
Goller)
 ((tejaswi.marthi@thomsonreuters.com))