Jefferies raises TechnologyOne's PT on UK business growth

TECHNOLOGY ONE

24/05/2023 01:06

** Jefferies raises price target on Software as a Service
(SaaS) co TechnologyOne  TNE.AX  to A$18 from A$14 and upgrades
to "buy" on growth seen in its UK business
    ** The UK business has started to see stable growth in
annual recurring revenue and profitability and co's FY23
forecast is ahead of street expectations - Jefferies
    ** Brokerage raises FY23-25 revenue forecast by 6-10% on
back of stronger contract growth being sustained over the medium
term
    ** Brokerage Morningstar maintains PT of A$11.20 on view
that TNE's move to cloud-based SaaS hasn't had a meaningful
impact on customer churn
    ** Morningstar forecasts full-year dividends of 16
Australian cents per share
    ** Three of 11 analysts rate TNE stock "buy" or higher,
seven "hold", one "sell", their median PT is A$14.45 - Refinitiv
data
    ** Stock up ~20% YTD, as of last close
 

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))