The $50m capital raising was larger in size than Citi analysts had anticipated. The flip side of that is the company now has plenty of funds to deliver on its FY21 ARR target, the analysts surmise. The acronym stands for annualised recurring revenues.
Buy/High Risk rating retained, but the price target slumps to 75c on a combination of lowered ARR forecasts and dilution from the expanded capital base.
Citi analysts continue to assume management will beat its own ARR target handsomely -$125m versus $100m targeted- but the analysts are also cognisant of the fact that, right now, the attention goes out to the partner channel and enterprise customers.
LiveTiles is projected to generate positive cash flow from the second half onwards.
Sector: Software & Services.
Target price is $0.75.Current Price is $0.35. Difference: $0.40 – (brackets indicate current price is over target). If LVT meets the Citi target it will return approximately 53% (excluding dividends, fees and charges – negative figures indicate an expected loss).