Jefferies sees ReadyTech as 'appealing' on better organic revenue growth

TECHNOLOGY ONE

08/03/2023 22:44

** Brokerage Jefferies sees Australia's software as a
service business ReadyTech Holdings  RDY.AX  as "appealing" on
view that it is penetrating its key verticals, "winning share
from incumbents and not suffering churn"
    ** Analysts say that both co and its competitor
TechnologyOne  TNE.AX  have been acquisitive but RDY has been
generating about twice the organic revenue growth of TNE for
half the costs 
    ** Brokerage says organic revenue growth suggests that RDY
is penetrating its three key verticals - education, workforce
solutions, and government and justice
    ** On Jefferies' analysis involving backing out impact of
M&A for insights into co's organic revenue growth, it has
lowered RDY's FY23-FY25 underlying NPAT attributable forecast by
5%, 9%, and 3% respectively
    ** ReadyTech is down 10% this year as of last close
 

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