** Shares of Australia's Audinate Group set to drop close to 55% in 2024

** Stock set for its worst year since listing

** The audio-visual network developer was hit by a raft of earnings downgrades over the year, reflecting rising industry inventory levels and muted demand

** Stock hit A$18.75 record high in February on robust HY results but dropped to A$6.5 in August on a dismal FY25 outlook

** Stock currently trading at A$7.48

** Jefferies downgraded AD8 to "hold" from "buy" in Octocber after co's Q1 update

** Morningstar in an October note flagged that Audinate was not showing any signs of improvement while it was transitioning the business from hardware-based sales to software-based sales

** Market appears to believe the company's current slowdown may signal a loss of competitive position or exhaustion of its addressable market, Morningstar added

** Audinate is set to be one of the benchmark index's worst performers in 2024

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(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))