Enfusion drops as earnings margins get squeezed
25/03/2022 15:57
** Shares of cloud services provider ENFN.N fall as much
as 23.8% to $11.60, a near two-month low
** Co's Q4 adj EBITDA margin falls to 10% from 25.1%, hurt
by wage increases, a ramp up in hiring and investments to fuel
its global expansion
** ENFN last down 23.3% and is on pace for its worst day
since going public in October; stock among biggest NYSE-listed
pct losers
** Credit Suisse cuts PT on stock to $20 from $25, saying
margins will likely be compressed for coming quarters as well
** However, ENFN, whose customers are largely investment
managers, beat Q4 revenue estimates and forecast FY 2022 revenue
above expectations urn:newsml:reuters.com:*:nFWN2VR1F0
** 4 of 7 brokerages rate stock "buy" or higher and 3
"hold"; their median PT is $20
** Stock down over 44% so far this year
(Reporting by Uday Sampath in Bengaluru)
((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223
8780; Twitter: https://twitter.com/sampath_uday ;))