Canaccord raises PT on Symbio post acquisition of cloud-based tech platform

Symbio Holdings

05/02/2023 19:28

** Analysts at Canaccord Genuity view Symbio Holdings'
 SYM.AX  acquisition of Intrado Australia's Unified
Communications as a Service (UCaaS) business as adding important
scale to the company's growing UCaaS segment at a very
reasonable valuation and which delivers worthwhile accretion to
earnings
    ** The software company earlier this month announced it had
completed the acquisition for A$5 million ($3.46 million)
    ** The brokerage lifts Price Target on co to A$3.05 from
A$3.00; remains 'Buy' rated
    ** Canaccord raises FY23, FY24 and FY25 revenue forecasts on
co by 2%, 5% and 5% respectively which assumes the acquired
business maintains its historic ARR and EBITDA margins
    ** Pushes FY23, FY24 and FY25 EBITDA estimates by 3%, 6% and
6% respectively 
    ** Adds earnings upgrades apply if SYM is able to realise
cost-out synergies from network migration and generates revenue
growth in FY25, post bedding down the acquisition in FY24
    ** Believes there is material upside and potentially an
opportunity for stock re-rate on more positive momentum for co -
Canaccord
    ** Two of three analysts rate the stock "buy" or higher and
one "hold"; their median PT is A$2.20 – Refinitiv data
    ** Stock fell 76.8% in 2022
($1 = 1.4451 Australian dollars)
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))