How are energy investors positioned?
RBC Capital initiated coverage on Nuix Ltd (ASX:NXL) Monday with a sector perform rating and a price target of AUD2.60 per share.
The research firm highlighted Nuix’s software platform that helps enterprise customers and governments analyze growing volumes of unstructured data, noting structural tailwinds including increasing data volumes, regulatory compliance requirements, and cybersecurity needs.
RBC Capital cited several challenges facing the company, including limited revenue visibility, long sales cycles, and uncertain deal closure timing that led Nuix to withdraw its fiscal year 2025 guidance in May.
The firm also pointed to Nuix’s ongoing transition to cloud architecture and shift toward a consumption-based revenue model as factors in its assessment, while noting that channel checks confirm Relativity represents strong competition in the market.
RBC Capital’s fiscal year 2025 revenue estimates for Nuix are approximately 5% below consensus, though its EBITDA projections align with market expectations.
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