- We raise our target price (TP) for ACV by 13% and upgrade our rating from MARKET PERFORM to OUTPERFORM. ACV’s recurring costs trailed our expectation in Q1 2023.
- Our higher TP is driven by changes to our 2023F/24F/25F/26F/27F NPAT (excluding contributions from State-invested assets) of -1%/13%/11%/-4%/14%, respectively, and rolling our TP horizon forward from end-2023 to mid-2024.
- We cut both our COGS and general expenses forecasts and expect ACV’s EBITDA margin will return to the pre-COVID level of 65% in 2024.