Altium’s result beat on the critical revenue line, exceeding the company’s target. Sales and subscriber growth and renewals continued to improve, the broker notes, reflecting a stronger organic growth profile.
Altium has reiterated its FY20 revenue target while lowering expected contribution from acquisitions, meaning organic growth is seen as the key driver. The broker retains Buy, lifting its target to $9.50 from $9.10.
Sector: Software & Services.
Target price is $9.50.Current Price is $8.50. Difference: $1.00 – (brackets indicate current price is over target). If ALU meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).