Morningstar upbeat on Australia's TechonologyOne, raises fair value estimate

TECHNOLOGY ONE

25/09/2023 20:31

** Analysts at Morningstar raise fair value estimate for
software-as-a-service company TechnologyOne  TNE.AX  by 25% to
A$14.00/shr    
    ** Cites co's strong public-sector customer base and high
retention rates
    ** Brokerage expects TNE revenue to grow at compound annual
growth rate of 10% and EBIT margin to expand to 37% in FY2032
from 31% in FY2022
    ** "Co's long-term growth to be driven by increased
development and adoption of its products, especially by its
local government and education customers in Australia and New
Zealand" - Morningstar
    ** 5 of 13 analysts rate stock "buy" or higher, 6 rate
"hold" and 2 as "sell" or lower - LSEG Data
    ** TNE stock up 16.1% YTD, through last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))