Citi has initiated coverage of Appen Limited (ASX: APX) with a buy rating and a $5.88 price target. Citi notes Appen is “a global leader in the development of high-quality, human annotated data for machine learning programs. We believe Appen is well positioned to facilitate leading global technology companies in advancements in voice-activated interfaces and improvements in internet search quality.”
APX’s service facilitate client-companies’ technology, and Citi says it expects APX to expand beyond its traditional segments into new areas, including security, automotive and health sectors. Citi also says it expects voice-based human-machine interaction to grow “materially,” and APX’s language resources division should benefit through this.
Citi’s forecast has 2017 financial revenue growing by 40% to $155 million and EBITDA growing by 50% (Guidance: 40%-50%, Consensus: 53%) to $26 million, with APX’s Content Relevance division contributing 90% of the EBITDA uplift (excl. Corp. costs).
Citi notes that APX’s revenues are “primarily based on short term contracts and its top 5 customers represent 88% of revenue,” which they acknowledge as risks, but says they believe long-term client relationships and overall growth of artificial intelligence as medium-term demand drivers.
- Forums
- ASX - By Stock
- APX
- Citi initiates coverage with Buy recommendation
Citi initiates coverage with Buy recommendation
-
- There are more pages in this discussion • 35 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add APX (ASX) to my watchlist
(20min delay)
|
|||||
Last
51.5¢ |
Change
-0.005(0.96%) |
Mkt cap ! $114.5M |
Open | High | Low | Value | Volume |
52.5¢ | 53.0¢ | 50.5¢ | $1.020M | 1.981M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 60375 | 51.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
51.5¢ | 36775 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 60375 | 0.510 |
20 | 264230 | 0.505 |
42 | 1340960 | 0.500 |
3 | 31299 | 0.495 |
7 | 103242 | 0.490 |
Price($) | Vol. | No. |
---|---|---|
0.515 | 36775 | 5 |
0.520 | 24743 | 6 |
0.525 | 83546 | 3 |
0.530 | 30000 | 2 |
0.535 | 15109 | 2 |
Last trade - 16.10pm 05/06/2024 (20 minute delay) ? |
|
|||||
Last
51.0¢ |
  |
Change
-0.005 ( 2.15 %) |
|||
Open | High | Low | Volume | ||
53.0¢ | 53.0¢ | 50.5¢ | 690252 | ||
Last updated 15.58pm 05/06/2024 ? |
Featured News
APX (ASX) Chart |
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, CEO
Anthony Noble
CEO
Previous Video
Next Video
SPONSORED BY The Market Online