FY21 results were below both Macquarie and consensus forecasts as well as company guidance. The FY22 revenue guidance range is narrowed to US$209-217m from US$202-222m while the earnings (EBITDA) margin is lowered to 34-36% from 36-39%.
The broker decreases its rating to Underperform from Neutral and it’s felt market confidence will be reduced around the company’s lack of visibility on the longer-term outlook. The target price falls to $27.60 from $30.
Sector: Software & Services.
Target price is $27.60.Current Price is $29.90. Difference: ($2.30) – (brackets indicate current price is over target). If ALU meets the Macquarie target it will return approximately -8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
