Citi sees risk to Australia's Altium due to weaker macro environment

Altium

06/09/2022 23:06

** Citi sees potential headwinds to Australia's Altium
 ALU.AX  due to risk in new license sales on account of weaker
macroeconomic environment
    ** Also says subscriber growth weakness could be a medium to
long-term concern
    ** The brokerage, however, forecasts increased uptake of Pro
licenses along with the shift towards term-based licenses and
price increases to boost average revenue per unit to A$3.3k by
FY25
    ** Says increased ARPU could raise confidence in Altium's
ability to hit its $500 million revenue target by FY26 earnings
season versus Citi estimate of $432 mln  
    ** The brokerage upgrades its FY23 earnings estimate by
6%-7% to $257 mln, towards the bottom-end of guidance range of
$255 mln–$265 mln
    ** Brokerage maintains "Neutral" rating on the stock, raises
price target to A$35.40/shr
    ** Six of 13 analysts rate the stock "buy" or higher, four
"hold" and three "sell" or lower; their median PT is A$34.40 –
Refinitiv data
    ** Stock has fallen ~21% this year, as of last close

 (Reporting by Archishma Iyer in Bengaluru; Editing by Richard
Chang)
 ((Archishma.Iyer@thomsonreuters.com;))