Morningstar initiates coverage on Australia's Audinate, positive on outlook

Audinate

30/05/2024 21:12

** Analysts at Morningstar initiate coverage on Audinate
 AD8.AX  with a fair value estimate of A$23 per share
    ** Forecasts revenue to grow at a 10-year compound annual
growth rate of 22% and EBIT margins to expand to 36% by fiscal
2033 from 1% in fiscal 2023
    ** Says the professional audio-visual networking technology
provider is still in the early adopter phase for its audio
market opportunity
    ** Expects Audinate to increase its monetization, as its
network effects and pricing power continue to strengthen
    ** Stock is set to lose 12.3% this week, its biggest weekly
loss since mid-September 2020
    ** AD8 is on track to decline for the third consecutive
month, with the worst monthly loss since March 2020
    ** Stock has fallen 7.4% YTD, as of last close

 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))