0027 GMT - Technology One's elevated earnings multiple looks defendable thanks to factors including the enterprise software provider's long-duration growth prospects and low churn rates, UBS analysts say. They acknowledge potential concern over the company's valuation at 59 times cash Ebitda, but see plenty of reasons to maintain their buy rating on the stock. They anticipate near-20% annual growth in pre-tax profit over the next five years, aided by a customer churn rate below 1%. The company's rule-of-40 performance looks good compared with that of Australia-listed peers, while A$219 million in net cash could support further bolt-on acquisitions. UBS lifts its target price by 29% to A$33.80. Shares are down 1.4% at A$29.04. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 19, 2024 19:27 ET (00:27 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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.