Technology One's Elevated Multiple Isn't Excessive -- Market Talk

Dow Jones

Nov 20, 2024

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)

At the request of the copyright holder, you need to log in to view this content

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.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2484318665"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2484318665\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2484318665?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-11-20 08:27","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2484318665","market":"hk","top_or_hot":-1,"title":"Technology One's Elevated Multiple Isn't Excessive -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  November 19, 2024 19:27 ET (00:27 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Technology One's Elevated Multiple Isn't Excessive -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTechnology One's Elevated Multiple Isn't Excessive -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-11-20 08:27</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  November 19, 2024 19:27 ET (00:27 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7503","symbol_name":"科技股","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2484318665","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484318665","pubTimestamp":1732062420,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7503":"科技股","TNE.AU":"TECHNOLOGY ONE LTD","BK7016":"应用软件"},"translate_title":"科技一号的高市盈率并不过分——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TNE.AU":0.9},"content_text":"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) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  November 19, 2024 19:27 ET (00:27 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}