2144 GMT - Appen's lack of protection against customers lowering work volumes stops Jefferies analysts from becoming more positive on the stock. They tell clients in a note that the AI-training provider's lowered cost base positions it for earnings growth from new revenues, but say they remain concerned about its contract structures. Appen's revenues are project-based and the company therefore has no downside protection to customers lowering their initial volume commitments, the analysts add. Jefferies raises its target price by 67% to A$2.00 but keeps a hold rating on the stock. Shares are at A$1.92 ahead of the open. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 03, 2024 16:44 ET (21:44 GMT)
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