UBS was not surprised by the $800m capital raising and the $250m sell-down by the company’s co-founders, assessing this is understandable in the current situation.
The capital raising significantly de-risks the operating model and the broker estimates the company can now fund its entire FY22 sales assumptions via equity.
Nevertheless, the UBS view on the fundamental valuation of the stock is unchanged and a Sell rating is retained. Target is raised to $27 from $25.
Sector: Software & Services.
Target price is $27.00.Current Price is $67.50. Difference: ($40.50) – (brackets indicate current price is over target). If APT meets the UBS target it will return approximately -150% (excluding dividends, fees and charges – negative figures indicate an expected loss).
