Morgans initiates coverage on Audeara with a Speculative Buy rating and target price of $0.33. It’s considered the current share price represents a clear buying opportunity, given weakness since the IPO in May, 2021.
The company’s primary product is the A-01 headset and BT-01 transceiver bundle, which is sold in 712 clinics across three major global audiology groups in Australia. There is a recent distribution agreement allowing access to a further 12,000 clinics globally.
A hearing test identifies which areas of a user’s hearing is stronger or weaker, and by what amount. This enables the company’s specialised algorithms to adjust the sound profile of the device to perfectly suit the listener’s unique hearing profile.
Downside risks include delays in securing additional clinics and prolonged sales per clinic below Morgans medium to long-term forecasts.
Target price is $0.33.Current Price is $0.13. Difference: $0.20 – (brackets indicate current price is over target). If AUA meets the Morgans target it will return approximately 61% (excluding dividends, fees and charges – negative figures indicate an expected loss).
