Bell Potter Analyst, Chris Savage, has initiated coverage of Altium (ALU) with a Buy rating
Bell Potter Analyst, Chris Savage, has initiated coverage of Altium (ALU) with a Buy rating. Altium is a top five player in the global PCB (printed circuit board) design market and is the market leader in its key market segment (mainstream). The company has announced it intends to leverage its market position and release new products into both the high-end and low-end segments of the market, thus providing potential new areas of growth. Supported by a strong balance sheet (c.US$15m cash and negligible debt), we have a price target of $2.75. This is generated from a blend of three valuation methodologies we apply to the company: PE ratio, EV/EBITDA and DCF. The price target is a 25% premium to the current share price of $2.20 and the total expected return (including the dividend yield) is 31%. All Bell Potter research reports are available to our clients via (VIEW LINK)
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