Jefferies downgrades Objective Corp stock rating to Underperform on valuation concerns

Published 07/07/2025, 09:18
Jefferies downgrades Objective Corp stock rating to Underperform on valuation concerns

Investing.com - Jefferies downgraded Objective Corp Ltd (ASX:OCL) from Hold to Underperform on Monday, while raising its price target to AUD14.00 from AUD13.00.

The downgrade comes despite the stock’s significant 57% price appreciation over the past year, with an additional 13% gain in the second half of fiscal year 2025 to date.

Jefferies cited concerns about Objective Corp’s current annual recurring revenue (ARR) run-rate growth, which is tracking below the company’s fiscal year 2025 target of 15%.

The research firm expressed skepticism about Objective Corp’s ability to meet its ARR growth targets for the full fiscal year 2025, given current performance metrics.

The price target adjustment to AUD14.00 reflects Jefferies’ updated valuation assessment amid the stock’s continued price strength despite underlying growth concerns.

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