Morningstar optismitic on Australia's TechnologyOne; maintains fair value estimate

TECHNOLOGY ONE

21/03/2024 21:49

** Analysts at Morningstar maintain fair value estimate on
Australia's TechnologyOne  TNE.AX  at A$14.00/shr
    ** Brokerage assumes TNE's 10-yr revenue compound's growth
rate of 10%, to support its fair value estimate
    ** See no obvious levers to support continuation of TNE's
historically high growth rates - Morningstar
    ** Anticipates enterprise software co to invest more for
incremental growth, due to a 26% increased investment in
research & development off its revenue, from 21% in past 5-yrs
    ** Brokerage adds TNE remains open to expansion efforts,
especially to UK
    ** Four of 11 analysts rate the stock "buy" or higher, 7
"hold" and 2 "sell" or lower; their median PT is A$16.59 – LSEG
    ** Stock up 9.6% YTD, as of last close   

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com))