Raytheon awarded $71 million in Navy contracts for missile systems
Investing.com - UBS has upgraded Audinate Group Ltd (ASX:AD8) stock rating from Neutral to Buy, while lowering its price target to AUD7.10 from AUD10.85.
The upgrade comes as UBS analyst Tim Plumbe expressed confidence in Audinate’s long-term growth potential in the digital audio market, where its Dante technology is considered the "holy grail" according to industry contacts.
UBS noted that Audinate has achieved only 10% penetration of the audio opportunity, suggesting significant growth runway as the structural shift from analog to digital audio continues.
The firm views its own forecasts for Audinate’s video business as conservative, projecting gross profit of $6 million in FY28 and $36 million in FY35, representing 3.6% long-term market penetration.
UBS believes Audinate’s current share price reflects very little value for its video business, which combines interoperability with control functionality to create an important differentiator in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.