Australia's Appen: Citi sees no impact from EU workers classification proposal

Global Brokerage

14/12/2021 05:54

** Citi expects artificial intelligence firm Appen Ltd
 APX.AX  to not have any material impact from the European
Union's (EU) proposal to classify workers on digital labour
platforms
    ** Brokerage sees no impact from proposal as APX has low
exposure to job listings from the EU - about 10% of total
listings over last two years 
    ** The European Commission https://ec.europa.eu/commission/presscorner/detail/en/ip_21_6605,
 on Dec. 9, has proposed a list of measures https://www.reuters.com/technology/eu-draft-rules-gig-workers-target-uber-deliveroo-online-platforms-2021-12-09
 to improve working conditions of gig economy workers in digital
platforms, where companies will have to classify platform
workers as employees if they meet certain conditions 
    ** Brokerage also sees APX to be considered as employer as
it would meet the criteria related to determining the level of
remuneration and verifying the quality of work
    ** Brokerage maintains PT at A$10.13, and its rating stance
at "Buy" 
    ** Six of 12 analysts rate the stock "buy" or higher, four
"hold" and two "sell" or lower; their median PT is A$12.93 -
Refnintiv data 
    ** APX has fallen about 59% this year as of last close

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))