UBS strategists ponder whether the growth trade is becoming vulnerable with a backdrop of negative earnings revisions and a potential lift in bond yields.
MYOB is a quality business UBS believes, with the benefit of an incumbent position and recurring revenue. The long-term growth profile hinges on cloud penetration and market share and the broker forecasts cloud penetration to lift to 80% in the long term.
The broker forecasts revenue growth of 11% and earnings per share growth of 12%. Neutral rating retained. Target is $3.60.
Sector: Software & Services.
Target price is $3.60.Current Price is $3.77. Difference: ($0.17) – (brackets indicate current price is over target). If MYO meets the UBS target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).