Deutsche Bank has initiated coverage of MYOB, rating it as a BUY, saying the cloud software group is catching up with its main competitor.
In a note to clients, analysts Tim Baker and Joseph Kim wrote, “Whilst its origins are in desktop software and it has lagged XRO (Xero), its nearest competitor, in the number of cloud subscribers, our discussions with accountants suggest MYO is improving its cloud offering and catching up”.
“We believe the large addressable market provides MYO with substantial room to grow despite the competitive environment.”
A short time ago, MYOB’s shares were up 1.25% to $4.04 (£3.07). Deutsche Bank has a BUY recommendation with a $4.40 (£3.35) price target.
MYOB has 1.2 million small to medium enterprise users and 40,000 accountant partners.