Subscribe to Avid story: JPM starts coverage with 'overweight'

Avid Technology

06/07/2022 10:17

** J.P.Morgan starts coverage on software co Avid Technology
 AVID.O  with "overweight" rating and PT of $33 
    ** JPM says Avid's growth is powered by transition to
subscription services and innovative product offering - driving
increase in average revenue per user (ARPU)
    ** Says Avid is "attacking" a more than $15 bln total
addressable market (TAM) across Pro tools software with help
from cross-selling plug ins, virtual instruments and sounds
    ** Adds Media composer and tangential video software are
addressing a $12 bln TAM, driven by strong industry demand for
content
    ** "We expect relative strength in Enterprise outlook over
the next five years as enterprises accelerate cloud transition
at higher contract values," JPM says
    ** JPM expects overall subscription and maintenance to drive
double-digit revenue growth and estimates ~20% EBITDA margins by
2025
    ** As of last close, AVID down 19.2% YTD
    

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))