With revenue pre-released, Credit Suisse found no surprises in Altium’s top line numbers. The company’s earnings missed the broker’s forecasts led by cost growth driving operating deleverage.
Altium has guided to revenue of US$190-$195m for the year with operating income of US$70-$76m. While a considerable acceleration is required to achieve the guidance, the broker does not see enough positive news to provide comfort this can be achieved.
Outperform rating retained with a target of $35.
Sector: Software & Services.
Target price is $35.00.Current Price is $29.19. Difference: $5.81 – (brackets indicate current price is over target). If ALU meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).