The upside in Altium

It’s always difficult to gauge near-term results – at Montgomery, we typically take a much longer term view. We do however expect a strong result in the coming weeks from Altium Limited (ASX: ALU). Altium develops software that allows engineers to design Plastic Circuit Boards that run all the electronics we use today. Its flagship software product (Altium Designer) has been a strong performer, taking market share from more established players in a growing industry. Altium has grown its market share while raising the price of its product by 30 per cent. What’s more, its customers are switching to subscription programs, which makes longer term earnings more sustainable. When you couple this growth with a large proportion of sales in US dollars, we consider it has every chance of beating expectations. (VIEW LINK)