Jefferies looking for UK growth on TechnologyOne to become positive on stock

TECHNOLOGY ONE

24/05/2022 22:00

** Jefferies says software maker TechnologyOne's  TNE.AX 
FY22 guidance met estimates, but results were a "slight miss",
adding that it is looking for acceleration of growth in the UK
to become more positive on stock
    ** Jefferies maintains its A$11.00 price target and "hold"
rating on TNE
    ** TNE on Tuesday forecast 10% to 15% growth in net profit
before tax for FY22, and over 40% growth in FY22 Software as a
Service annual recurring revenue (ARR)  urn:newsml:reuters.com:*:nASX8ZspBQ 
    ** Co reported H1 profit before tax up 14% at A$42.6
mln($30.27 mln), below Jefferies' estimates 
    ** Brokerage estimates existing customers accounted for 75%
to 80% of total ARR growth between 1H19 and 1H22, which it says
is a positive dynamic, with much lower customer acquisition
costs for the additional revenue 
    ** Out of nine analysts who over TNE, four rate it "buy",
four "hold", one "sell"; median PT A$12.09 - Refinitiv Eikon
data
    ** Stock on Tuesday closed down 1.6% at A$10.24 after
results 
    



($1 = 1.4073 Australian dollars)
    

 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))