Canaccord Genuity rates ((AND)) as Buy - Following a 1Q run-rate...

Canaccord Genuity rates ((AND)) as Buy  -

Following a 1Q run-rate for revenue ahead of Canaccord Genuity's 1H forecast, the broker believes Ansarada Group is in the early stages of an earnings upgrade cycle.

The broker expects future revenue growth given deferred revenue increased by 10% quarter-on-quarter to $18.6m and is now at record levels. Growth for customer additions in the quarter illustrates latent demand for the company's platform, in the analysts' view.

Strong earnings leverage into FY25 is likely, according to Canaccord, thanks not only to deferred revenue but also price rises in October and ongoing growth in active customers.

The Buy rating and $2.00 target are maintained.

https://www.fnarena.com/index.php/2023/11/01/australian-broker-call-extra-edition-nov-01-2023/