ALU – Credit Suisse rates the stock as Outperform

A high offer from Autodesk to acquire Altium has driven up the company’s target price, with Credit Suisse saying the offer suggests Altium’s ability to attract future partnerships and strategic arrangements.

Autodesk’s offer of $38.50 implies a valuation of 21x revenue for FY21 and 56x underlying earnings. The broker notes this sits at the very high end of corporate valuation metrics and wouldn’t rule out a higher offer.

The Outperform rating is retained and the target price increases to $42.00 from $35.00.

Sector: Software & Services.


Target price is $42.00.Current Price is $34.71. Difference: $7.29 – (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).



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