Citi expects a step up in growth in the second quarter as the company angles for a partner-based channel strategy. The broker is looking for a record second quarter after a weaker-than-expected first quarter.
Revenue and operating earnings forecasts increase in FY20 as the broker now models non-recurring revenue from Wizdom and CYCL separately.
Buy rating maintained. Target is reduced to $0.63 from $0.75 to reflect slower ARR growth and incremental costs from the acquisition of CYCL.
Sector: Software & Services.
Target price is $0.63.Current Price is $0.27. Difference: $0.36 – (brackets indicate current price is over target). If LVT meets the Citi target it will return approximately 57% (excluding dividends, fees and charges – negative figures indicate an expected loss).