ALU – UBS rates the stock as Neutral

Altium has divested its non-core tasking division to the European private equity firm – FSN Capital – for US$110m. The transaction is expected to complete in the third quarter of FY21.

The company reaffirmed its FY21 guidance despite the covid lock-downs in the US and the tasking transaction that will impact the historical revenue split of 45:55.

UBS notes the divestment is consistent with Altium’s focus on its Altium 365 platform and realignment to cloud. Post-transaction the company will have more than US$210m in net cash, potentially opening increasing acquisition opportunities.

Neutral and $36 target retained.

Sector: Software & Services.


Target price is $36.00.Current Price is $34.58. Difference: $1.42 – (brackets indicate current price is over target). If ALU meets the UBS target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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