The company has announced the acquisition of Avaxa for $2.2m, which will expand its customers to include both the Chisholm TAFE and Melbourne Polytechnic.
Macquarie believes the acquisition should improve the prospect for transitioning of Avaxa customers to ReadyTech’s JobReady Plus platform.
The main downside risk the broker envisages is FY22 guidance for mid-teen organic revenue growth falling short. This would reduce confidence in the FY26 $125m organic revenue target. Outperform retained. Target rises to $3.98 from $3.30.
Sector: Software & Services.
Target price is $3.98.Current Price is $3.51. Difference: $0.47 – (brackets indicate current price is over target). If RDY meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
