Jefferies raises PT on Australia's Readytech Holdings

Readytech Holdings

27/09/2023 21:11

** Analysts at Jefferies say ReadyTech Holdings'  RDY.AX 
research & development (R&D) capitalisation has peaked; see it
moderating back towards historical averages going forward
    ** Brokerage raises price target on RDY to A$4.30/shr from
A$3.80/shr, maintains "buy" rating
    ** Analysts note that in FY23 results, co provided
projections for labour capitalisation to decline from ~16% in
FY23 on a step change basis to 12%-13% by FY26
    ** "We forecast the decline in labour capitalisation
translates to a lowering of R&D capitalisation from 58% in FY23
to 40% in FY26" - Jefferies
    ** 6 of 6 analysts rate the stock "buy" or higher - LSEG
data
    ** RDY stock up 8.8% this year, as of last close
    

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))