Credit Suisse increases its target price for Technology One to $12 from $9.50, following FY21 results that came in at the high-end of guidance. Despite a lack of near-term catalysts, the analyst now expects sustainable double-digit profit growth.
By FY24, the broker forecasts a 35% profit (PBT) margin. End of on-premise support is planned for October 2024, which should accelerate the completion of the shift to SaaS.
In the longer term, the broker weighs positive drivers (product and geographic penetration) versus increased competition. Neutral rating maintained.
Sector: Software & Services.
Target price is $12.00.Current Price is $11.97. Difference: $0.03 – (brackets indicate current price is over target). If TNE meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
