Altium rating cut by Jefferies to 'hold'

Altium

16/11/2023 23:26

** Analysts at Jefferies downgrade rating on software maker
Altium's  ALU.AX  shares to "hold" from "buy"
    ** Brokerage raises PT to A$47.08 from A$44.69
    ** Company on Thursday reaffirmed FY26 revenue target of
A$500 mln ($323.85 mln), compared to brokerage estimate of A$444
mln
    ** Brokerage says company should either enter an M&A or
accelerate growth in design tool Enterprise, or both, to meet
FY26 revenue target
    ** Brokerage says company's early success in winning
enterprise customers and attracting non-printed circuit boards
designers to its platform will be short-lived
    ** 5 of 15 analysts rate the stock "buy", 8 "hold" and 2
"sell"; median PT A$43.25 – LSEG
    ** Altium shares up 25.9% this year, as of last close

 ($1 = 1.5439 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))