MACQUARIE downgrades APX to Underperform from Neutral, page-33

From the AFR:

Appen dives on Macquarie downgradeAlex Gluyas

Shares in Appen plunged in the opening minutes of trade after Macquarie released a report which expressed concern about the company potentially releasing a guidance downgrade in coming weeks.Analysts pointed out that Appen is yet to provide a year-end guidance update which indicates the risk of a potential downgrade.“Appen has provided a trading update on its financial year guidance before year end over the past few years. In 2018 and 2019, the company upgraded guidance in mid-November, whereas in 2020, Appen downgraded guidance in December,” analysts said.“The difference in timing of upgrades vs downgrades are due to Appen’s lack of earnings visibility in our view.”The broker said the outcomes for the 2021 financial year are either Appen meeting guidance but providing no trading update, or a potential guidance downgrade in the coming few weeks given an update has yet to be provided this year.The broker lowered its target price on the company to $9.50 and downgraded it to ‘underperform’. Shares in Appen were down 11 per cent to $10.36 in morning trade.