Appen (APX): Increase in PT to $2.00

Bell Potter

Stockbroker

We have reviewed and increased our forecasts in 2016 and 2017. We now forecast EPS growth of 18% and 12% in 2016 and 2017 which is an improved outlook on our previously forecast EPS growth of 13% and 8%. The key drivers of the upgrades are a modest increase in our revenue forecasts (driven by customers outside of Microsoft) and also a modest increase in our margin forecasts (driven by economies of scale and operating efficiencies). The reasons for these changes are the evident growth in revenue from new and existing customers highlighted by the most recent upgrade in guidance and the focus of new CEO Mark Brayan on generating operating efficiencies and streamlining processes in order to maintain or grow margins. Maintain BUY, PT up 15% to $2.00. Read the full report (attached).


Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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