Analysts see silver lining despite difficult 2HFY20 for Silverlake Axis

SINGAPORE (May 20): Despite forecasting a poor 2HFY20 on the back of a bearish Covid-19-hit economy, most analysts have maintained “hold” calls on Silverlake Axis on the back of attractive valuations for the software firm. 

How the firm - which specialises in software for the finance industry -- performs going forward, will depend on the willingness of banks and financial institutions to keep up with their IT capital expenditure post-crisis. 

“Silverlake Axis reported a weaker 3QFY20, below our estimate. It also guided for a weaker 4Q20, due to the Movement Control Order (MCO) in Malaysia. Large deals continue to be a challenge to close, with many delayed by MCO measures or economic uncertainties,” report RHB analysts Jarrick Seet and Lee Cai Ling. 

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