Equity Analysis /
Australia

AU : Mach7 Technologies - Winning new clients in a tough climate

    Derek Jellinek
    Derek Jellinek

    Senior Analyst - Healthcare

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    Scott Power
    Scott Power

    Senior Analyst - Healthcare, Life Science & Technology

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    CGS-CIMB
    21 January 2021
    Published byCGS-CIMB

    M7T posted a solid 2QFY21 cashflow result with receipts of A$4.2m and close to operating cashflow break-even. M7T secured 6 new sales orders and signed up 14 expansion or renewals from existing customers. Although the timing of new contract signings is difficult to predict we believe the momentum of additional customer wins will continue into the next two quarters. As a result we have made no changes to our forecasts and our DCF valuation and target price remain unchanged at A$1.49. We maintain our Add recommendation.