Ann: Appen expects non-cash asset impairment charge, page-26

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	Morgan Stanley	13/02/2023	5	Underweight	$2.25	-32.23%
1	COMMENTARYDespite a 35% share price rally so far this year on speculation Appen will benefit from wider industry investment in AI, Morgan Stanley is cautious given the company's human-based model is less economical than automated solutions provided by competitors.Also industry feedback suggests to the analyst customer budgets have been reallocated to content moderation AI, in which Appen has limited market share compared to global peer Lionbridge.The Underweight rating and $2.25 target are maintained. Industry View: Attractive.FORECASTMorgan Stanley forecasts a full year FY22 dividend of 0.00 cents and EPS of minus -12.80 cents.Morgan Stanley forecasts a full year FY23 dividend of 0.00 cents and EPS of minus -7.70 cents.