Australia's ReadyTech has low churn, appealing valuation - Jefferies

Readytech Holdings

13/06/2023 21:07

** Jefferies says Australia's ReadyTech  RDY.AX  continues
to look appealing, says RDY is organically penetrating its key
verticals (local govt., education) and not suffering churn
    ** Brokerage says co offers a solid pipeline, has improving
cash flows from FY24, low churn and an appealing valuation 
    ** ReadyTech has been generating 2 times more organic
revenue growth than peer Technology One; this is important and
goes some way towards levitating concerns around transparency
and sustainability of growth - Jefferies 
    ** Brokerage, however, cuts price target for co to A$3.70
from A$3.80 while maintaining rating at "buy"
    ** Jefferies cuts price target as brokerage sees higher tax
rate marginally hurting co's EPS in future       
    ** Six of six analysts rate the stock "buy" or higher; their
median PT is A$4.06 – Refinitiv data
    ** Stock has fallen 9.7% this year, as of last close

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))