Credit Suisse has become more balanced in its view of the stock and upgrades to Neutral from Underperform. The rating change is more about the share price than any fundamental difference.
Valuation still appears stretched at 51x 2020 price/earnings, although the broker notes the industry structure remains healthy. Credit Suisse increases 2021 sales forecasts on higher productivity assumptions. Target is raised to $30 from $29.
At this stage, the broker believes guidance for 2020 is achievable and leaves its forecast for $125.5m in operating earnings unchanged.
Sector: Software & Services.
Target price is $30.00.Current Price is $32.65. Difference: ($2.65) – (brackets indicate current price is over target). If APX meets the Credit Suisse target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).