Jefferies cuts PT on Australia's Audinate on expectations of lower growth

Audinate

11/08/2025 21:48

** Analysts at Jefferies cut rating for Australia's Audinate Group AD8.AX from "buy" to "hold", and lower PT to A$7.5/shr from A$9.5/shr, expecting lower growth

** Lowers FY26 to FY28 gross profit forecast for the audio-visual networking solutions firm to 14%-15% from ~26%-27%

** Say difficult for co to sustain growth at historical levels as networked audio — the segment driving co's growth — has already proliferated most of AD8's target market

** In the absence of a market leader in the video segment, co would have to achieve a clear breakthrough amid industry competition in the segment to drive future growth

** Jefferies sees medium-term growth in co's video-related revenue, but anticipates near-term challenges ranging from shorter order times and softer demand to increased inventories

** YTD, stock down 12.7%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))