June 19, 2019 / 2:28 PM / 4 months ago

BUZZ-Altus Group: Cloud transition and tax delays to impact H2- CIBC

** CIBC raises PT of software services provider Altus Group to C$26 from C$23 to reflect current valuation

** Brokerage says co’s share price has rallied ~15% since Q1 results in May

** Sees Street estimates for 2019 and 2020 as aggressive given that co is attempting to transition its analytics software into the cloud

** Expects transition to result in a slowdown in near-term revenue growth and increased costs

** “We note that the Ontario tax cycle appears to have moved to the right, with fewer mandatory settlement meetings expected to be held in H2 19 versus our initial expectations” - brokerage

** AIF shares down ~1% at C$32

** 8 of 9 brokerages rate the stock “buy” or higher, and 1 “sell”; their median PT is C$33

** Including today’s losses, Altus shares have risen ~35% YTD (Reporting by Shradha Singh in Bengaluru)

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