Australian Technology Sector: Software tracker - Jun 26

研报英文原文证据摘录

Australian Technology Sector: Software tracker - Jun 26

Valuation Method and Risk Statement

The telecom, media and tech sectors are driven by a combination of advertising, consumer

spending and corporate spending, which are inherently difficult to predict. Risks for

Telecommunication companies include operational and financial leverage, potentially adverse

regulatory rulings, changes in technology, increasing competition, and exposure to economic

cycles. The emergence of major structural changes to the Australian media landscape means

that the historic performance of the media industry is unlikely to be a reliable indicator of

future performance. Additionally, our technology stocks included involve a blend of DCF and

relative valuation methodology, balancing intrinsic valuation and the markets view on

valuation, which is particularly volatile for such growth companies.

WTC: Our price target for WTC is based on DCF methodology. Risks for WTC include i) macro

impacts on global trade volumes, ii) changes in technology, iii) increased competition, iv)

cybersecurity risk, and v) geopolitical risk.

XRO: As a growth-focused software business XRO is exposed to numerous commercial and

technological risks. These include competition from incumbents and other cloud-based

market entrants, significant cash investment required for product development and market

entry, inability to generate subscriber growth in a given market, technology obsolescence,

regulatory changes, data breaches, reputational risks and key supplier dependencies. Our

price target is based on an equal blend of DCF and 2yr fwd Sales methodology.

ZIP: Zip is an early-stage credit and payments disruptor and is hence exposed to numerous

commercial, lending, regulatory and technological risks.