Macquarie rates AD8 as Downgrade to Neutral from Outperform (3) -In updating its model for Audinate Group, Macquarie notes Pro AV market growth is GDP-linked due to the timing of equipment-upgrade cycles. The broker raises terminal penetration to reflect the structural trend of analogue to digital networking.Although Audinate is dominant in the audio hardware market, this is 16.5% of Macquarie's estimated terminal total addressable market and Video & Software opportunities are early-stage.The broker continues to like Audinate, with delivery on its strategy of growing the Dante-enabled network. However, with well-flagged M&A on the horizon and associated execution and reinvestment risks, Macquarie downgrades to Neutral from Outperform.Target rises to $15.80 from $13.50.Target price is $15.80 Current Price is $17.29 Difference: minus $1.49 (current price is over target).If AD8 meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).Current consensus price target is $14.34, suggesting downside of -10.9% (ex-dividends)The company's fiscal year ends in June.
AD8 Price at posting:
$16.36 Sentiment: Hold Disclosure: Held
