Investor focus will be on FY22 forecast from Aussie tech firms - RBC

Macquarie Technology

23/07/2021 05:57

** RBC says investor focus will be on FY22 forecast for
Australian tech stocks  .AXIJ  in the upcoming reporting season,
with the year presenting more normalised environment
    ** The brokerage's key picks in tech stocks for the upcoming
Australian reporting season are EML Payments  EML.AX , NEXTDC
Ltd  NXT.AX , Megaport Ltd  MP1.AX , and Macquarie Telecom Group
 MAQ.AX 
    ** RBC has 'underperform' rating on software maker Altium
Ltd  ALU.AX  and sees its FY21 revenue guidance slightly below
$190-195 mln range, EBITDA margin at low end of 37-39% range
    ** For AI firm Appen  APX.AX , broker has a 'outperform'
rating, sees 1H21 to be soft and forecasts potential headwinds
for advertising customers
    ** Aerial imagery firm Nearmap  NEA.AX  has 'sector perform'
rating, sees uncertainty around legal proceedings launched by
U.S. competitor EagleView to weigh on share price
    ** Says for payments solution provider EML, some slowdown in
the new deal pipeline in Q4 on top of additional compliance
costs could cause EML's earnings to fall below co's previous
guidance ranges
    ** Says questions remain around software firm Xero's
 XRO.AX  growth outlook in the US market, with co appearing
expensive
 
      Company         Ric       PT         Rating
 EML Payments Ltd   EML.AX    A$4.5     Outperform
     Appen Ltd      APX.AX    A$20      Outperform
    Altium Ltd      ALU.AX    A$31     Underperform
    Nearmap Ltd     NEA.AX    A$2.5   Sector Perform
 
 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))