Iress Shares Plummet As It Guides To a 20% Decline in Second-Half NPAT

We lower our earnings per-share forecast for narrow-moat Iress by 20% following updated full-year guidance. Like other enterprise software companies, Iress is experiencing longer sales cycles, as companies are becoming more cautious with their spending in a potential recessionary environment. As a result, Iress is downgrading its net profit after tax guidance for 2022 by 17% to AUD 56 million at the midpoint, down from AUD 68 million previously. We lower our forecasts in line with guidance, but our fair value estimate for Iress remains under review as we intend to cease coverage in November. We provide broad coverage of more than 1,500 companies globally and periodically adjust our coverage according to client demand, investor interest, and staffing. The break in coverage of Iress is likely temporary and we will likely look to reinitiate in future.