Macquarie Target rises to $17.90 from $15.80. Retains Neutral...

Macquarie Target rises to $17.90 from $15.80. Retains Neutral (13/2/24)

Audinate Group posted a solid result, Macquarie suggests, even without taking into account pent-up demand. There is remaining backlog in Ultimo, Brooklyn and Viper boards, to be worked through in the second half and FY25.Audinate Group beat FY24 video endpoint guidance, the broker notes. This reflects strong growth in Dante as Viper rolls off, with traction among name-brand customers. Similarly, a pipeline of nine proof-of-concepts in Dante Connect and the disclosure of established paying customers shows early delivery in Cloud.

Management commentary of 48:52 first/second half split implies FY24 gross profit above guidance, the broker notes, despite guidance being reiterated. With well-flagged M&A on the horizon and associated execution and reinvestment risks, Macquarie retains Neutral. Target rises to $17.90 from $15.80