Jefferies upbeat on Australia's TechnologyOne FY results, UK business in focus

TECHNOLOGY ONE

19/11/2024 21:49

** Jefferies says TechnologyOne  TNE.AX  reported yearly
profit growth ahead of street estimates and at the top of
guidance
    ** The business software provider reported on Tuesday profit
before tax (PBT) of A$152.9 million ($99.80 mln) for fiscal
2024, compared to A$129.9 mln from last year
    ** Brokerage maintains "buy" rating, increases price target
to A$35 from A$29
    ** "Profit beat comes in the face of near-term headwinds
created by SaaS+ unit economics" — Jefferies
    ** "The UK currently contributes ~7% of Total ARR, we
forecast for this to grow to more than 11% by FY30" — Jefferies
    ** TNE posted annual UK sales of A$8.7 mln, a 70% increase
from the previous year
    ** Co up 91.6% YTD as of last close, outpacing a 59.8% gain
on the ASX Information Technology index  .AXIJ 

($1 = 1.5321 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com))