Morningstar says Australia's TechnologyOne rally overstates long-term growth outlook
BUZZ-Morningstar says Australia's TechnologyOne rally overstates long-term growth outlook ** Morningstar says it believes investors in Australia's TechnologyOne TNE.AX are extrapolating recent revenue growth rates that were boosted by historically high inflation and population growth
** Investment research firm says TechnologyOne shares have risen nearly 50% since February lows as fears of disruption from artificial intelligence have eased
** Maintains A$22 per share fair value estimate on TechnologyOne, which sells interactive software with embedded artificial intelligence features to councils and higher education providers
** Expects revenue growth to moderate from high-teen rates over the past three years to the mid-teens this year
** 12 of 15 analysts rate the stock "buy" or higher, two "hold" and one "sell" or lower; their median PT is A$32, LSEG data shows
** Stock up 4.8% this year, as of last close
(Reporting by Roshan Thomas in Bengaluru; Editing by Bill Berkrot)
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