Audinate shares lift despite Macquarie downgrade
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The news: Audinate shares edged higher in early trading despite Macquarie downgrading its rating and price target on the audiovisual tech company.
The numbers: Audinate shares were up 0.4% to $6.84 at 10:25am AEDT. They have slumped by around 35% after initially rocketing following the release of the company's half-year result last month.
Macquarie downgraded the stock from 'neutral' to 'underperform' and slashed its target price by 27.6% from $8.70 to $6.30.
Macquarie also lowered its earnings estimates by 2% in FY25, 27% in FY26, 19% in FY27 and 33% in FY28.
The context: Macquarie analysts said that there is "no evidence for optimism", with Audinate currently facing challenges of softer economic growth, tariffs and weak audio-visual market data.
Audinate, the developer of the audio-over-ethernet system Dante, will also see cost cuts come at the expense of future growth, the analysts said, while earnings support from interest income may be eroded by mergers and acquisitions plans.
The source: Macquarie research
