Balanced Portfolio Recommendation: ADD 3% Audinate Group (AD8)
Date: 06/06/2024
*** GENERAL ADVICE ONLY***
Audinate Group Ltd (AD8) was founded with a vision to pioneering the future of AV. Audinate’s award winning Dante audio over IP networking solution is a market leader and used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries
Analysts have price targets of $22 to $23 for AD8. It’s considered a well managed, high-quality company with a large and highly-winnable market opportunity.
The group’s network effects, existing customer relationships, along with the scale of R&D, should accelerate the AV industry’s transition toward digital audio networking, according to the broker.
The analyst believes Audinate will gradually usher more AV professionals into higher-tier software subscriptions and increase prices per tier over time. The nascent video networking business also holds significant promise
With the recent sell off in Audinate considered an overreaction to the long term CFO, and the technical indicators turned, we see AD8 as a long term buy with high growth prospects and dominant market position
Existing Holding – 2% allocation
ADD 3% below 16.25
Price targets
T1 – $20
T2 – $23
T3 – > $25
Dominant Market Position
Growing addressable market of nearly 16% CAGR
Technicals:
- Daily MACD has crossed over positively
- Daily PSAR has turned positive
- Daily SMAS has returned to “UPTREND”
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.