PAC Partners analyst Shane Bannan has maintained their bullish stance on RDY stock, giving a Buy rating on September 1.
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Shane Bannan’s rating is based on several compelling factors that make ReadyTech Holdings Ltd. an attractive investment opportunity. The company operates in a highly fragmented and large market that is increasingly moving towards SaaS solutions, driven by the need for efficiency and the adoption of emerging technologies like AI. Despite the near-term arithmetic concerns, the company is profitable and self-sustaining, with a significant growth runway ahead, making it a worthwhile investment even with a modest near-term premium.
ReadyTech targets a similar market to larger competitors but focuses on the lower end with a more flexible platform, allowing institutions to integrate other applications. This segment is large and underpenetrated, providing ample growth opportunities. The company’s subscription-based model, while slower in growth, offers a very sticky customer base due to the mission-critical nature of its services. Additionally, recent challenges in the Local Government segment have been addressed, and the company claims a strong pipeline, although market sentiment may require evidence of traction before significantly increasing the share price.
In another report released on September 1, Morgans also maintained a Buy rating on the stock with a A$3.00 price target.