Moelis Australia has placed a buy rating on global technology company Livetiles Ltd (ASX: LVT) with a target price of 83c per share – Livetiles opened trading today at 65c.
The broker believes Livetiles is "executing as promised" with customer growth exceeding expectations with the sales pipeline for N3 looking "impressive" and Moelis anticipating first sales conversions in the current quarter.
Investors have been buoyed by Livetiles' partnership with Microsoft and the appointment of a dedicated sales and marketing team to propel growth through FY19 with Livetiles annualised recurring revenues up 275% to $15 million at June 30.
Moelis is confident Livetiles can execute its growth strategy and has upgraded its revenue estimates across FY21 to FY23 by between 15% and 25%, but has flagged operating costs will likely increase in the first quarter of FY19.
Other tech shares to watch for growth include Citadel Group Ltd (ASX: CGL) as the demand for data security grows and ELMO Software Ltd (ASX: ELO) as opportunities open up in the cloud solutions space.
