Australia's Audinate set for worst year ever on multiple profit downgrades

Audinate

27/12/2024 01:15

** Shares of Australia's Audinate Group  AD8.AX  set to drop close to 55% in 2024
    ** Stock set for its worst year since listing
    ** The audio-visual network developer was hit by a raft of earnings downgrades over the
year, reflecting rising industry inventory levels and muted demand
    ** Stock hit A$18.75 record high in February on robust HY results but dropped to A$6.5 in
August on a dismal FY25 outlook
    ** Stock currently trading at A$7.48
    ** Jefferies downgraded AD8 to "hold" from "buy" in Octocber after co's Q1 update
    ** Morningstar in an October note flagged that Audinate was not showing any signs of
improvement while it was transitioning the business from hardware-based sales to software-based
sales
    ** Market appears to believe the company's current slowdown may signal a loss of competitive
position or exhaustion of its addressable market, Morningstar added
    ** Audinate is set to be one of the benchmark index's worst performers in 2024

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AD8    https://tmsnrt.rs/4fxSzK9
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 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com))