Analysts Give Add Rating to ReadyTech Holdings. Here's Why.

December 27, 2024 11:57 AM AEDT | By Team Kalkine Media

Analysts Give Add Rating to ReadyTech Holdings. Here's Why. — Image source: Shutterstock

Undervalued and Growing

Morgans views ReadyTech's current valuation as undervalued. The company’s shares are trading at a ~20% discount to their historic average EBITDA multiple of ~11x, despite its demonstrated ability to drive growth. ReadyTech has a strong organic growth trajectory and is forecasted to deliver a 14.5% compound annual growth rate (CAGR) in EBITDA over the next few years.

Comprehensive Product Suite

ReadyTech’s software solutions span across various industries and functions, making it an essential service provider for its clients. Its offerings include:

Student Management Systems: For tertiary education institutions.
Payroll and HR Solutions: Supporting workforce management.
Enterprise Resource Planning (ERP): Tailored for local government.
Legal Case Management: Addressing needs in the justice sector.

This broad portfolio of mission-critical software enables ReadyTech to cater to diverse client needs, driving sustained growth.

Investment Opportunity

Morgans has assigned an Add rating to ReadyTech with a price target of $3.74. With the current share price at $3.08, investors have the potential to realize a 21% upside within the next 12 months.

ReadyTech's consistent organic growth, discounted valuation, and essential service offerings position it as a prime candidate for investors seeking long-term growth at a reasonable price. With a forecasted EBITDA CAGR of 14.5%, this SaaS leader is one to watch in 2024.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.