BUZZ-Australia's FINEOS Corp gains; Citi raises FY25-FY26 earnings outlook

Reuters
03-25
BUZZ-Australia's FINEOS Corp gains; Citi raises FY25-FY26 earnings outlook

** FINEOS Corporation FCL.AX rises 4.7% to A$1.942, highest since January 21

** Citi upgrades FCL's FY25 EBITDA forecast by 16%, FY26 forecast by 5% citing stronger-than-expected margins in FY24, lower cost expectations; sees FY26 opex declining 2% y/y

** Raises PT by 4% to A$2.35 to reflect earnings upgrades; maintains "buy"

** However, lowers FY25 rev outlook by 3% after co's weaker-than-expected FY25 rev forecast; cuts FY26 rev estimates by 7%

** Stock rated "buy" on avg; median PT is A$2.17, per data compiled by LSEG

** FCL gains 5.5% YTD

(Reporting by Manasi Dasa in Bengaluru)

((Manasi.DasaSundeep@thomsonreuters.com;))

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