Scotia Capital Scotia Capital’s Kevin Krishnaratne cut his Altus Group Ltd. target to $59 from $69 with a “sector perform” rating. The average target on the Street is $62.67.
“Altus reported a weaker-than-expected Q1 in its Altus Analytis business as recurring revenue was flat quarter-over-quarter, but more importantly bookings were down 24 per cent year-over-year as the March banking crisis put purchase decisions within VMS on pause,” said Mr. Krishnaratne. “While this dynamic is expected to be just a temporary pause, with interest and engagement with clients remaining high, we think better results may only start to be realized in 2H. Following the 15-per-cent sell-off, we think the stock could trade sideways until there is greater visibility on a bookings rebound. While our estimates for AA move lower, they still contemplate solid recurring revenue growth in the mid-teen range, with the company’s flagship ARGUS product performing well.”