BUZZ-Australia's Alcidion slips after Bell Potter downgrades to 'hold'

Reuters09-03

** Shares of Alcidion Group slip as much as 5.7% to A$0.066

** Bell Potter cuts its price target for the healthcare tech co to A$0.07 from A$0.08, downgrades rating to "hold" from "sell"

** Brokerage also decreases its near-term revenue forecasts to better reflect the now-disclosed starting contracted revenue for FY25

** On Aug. 29, co revealed A$28.0 mln ($18.97 mln) of contracted and renewal revenue for FY25 as at August, a near A$6 mln stepdown from last year

** Brokerage now forecasts FY25 revenue for co of A$37 mln, a 20% drop from its previous forecast of A$46.1 mln

** "We are now more cautious considering the reduced starting revenue in FY25 and modest cash balance of A$11.8 mln with lumpy quarterly cashflows that are historically weaker in Q1-Q2" - brokerage

** Stock down ~7% YTD, as of last close

($1 = 1.4760 Australian dollars)

(Reporting by Echha Jain in Bengaluru)

((Echha.jain@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment