Jefferies sees increase in subscription firming positive outlook for Altium

Altium

23/08/2022 01:09

** Jefferies says Australian software maker Altium  ALU.AX 
surprises with 2022 earnings beat helped by positive operating
leverage and surge in search engine 'Octopart' revenue
    ** Brokerage maintains "buy" rating but cuts price target to
A$38.13 from A$42.61 on higher risk free rate 
    ** Says the main surprise in FY22 results was the 10% jump
in subscription average revenue per user (ARPU) to A$2,170 
($1,492.53)/year
    ** Says co's transition from a perpetual to a subscription
model will continue to be a headwind in FY23 but will be a
tailwind in FY24/25 on a jump in subscription ARPU 
    ** "Octopart has become the default search engine for the
electronic industry and will continue to grow given ongoing chip
shortages albeit at lower rates," - Jefferies 
    ** Brokerage upgrades EBITDA forecasts by 4% and 3% for
fiscals 2023 and 2024, respectively 
    ** Stock down 33.8% this year, as of last close

($1 = 1.4539 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))