It has been a volatile day for the Altium Limited (ASX: ALU) share price on Wednesday.
The electronic design software company’s shares have been up as much as 1% to $30.19 and down as much as 2.5% to $29.20.
At the time of writing, the Altium share price is down 0.5% to $29.73.
What’s going on with the Altium share price today?
The bulls and bears have been battling it out today after Altium was the subject of two broker notes with opposing opinions.
In one corner you have Citi, which believes the recent weakness in the Altium share price is a buying opportunity, and then in the other corner you have Macquarie, which is tipping its shares to fall further.
According to a note out of Citi, its analysts have upgraded its shares to a buy rating with a price target of $35.40.
Based on the current Altium share price, this implies potential upside of 19% over the next 12 months.
Citi believes that Altium’s underlying business remains attractive and feels the pullback since its full year results release is an opportunity for investors. The broker also notes that the company’s guidance for FY 2022 was solid.
Over at Macquarie, its analysts feel very differently about the Altium share price.
In response to its full year results, the broker has downgraded the company’s shares to an underperform rating with a $27.60 price target. This implies potential downside of 7.2% over the next 12 months.
Macquarie was disappointed that Altium fell short of its guidance in FY 2021 just two months after reiterating it. The broker feels this may hit investor confidence, particularly in its ability to achieve its long term goals.
Altium is aiming to more than double its revenue to US$500 million by FY 2026, one year later than previously planned due to COVID-19 impacts.
Time will tell which broker has made the right call.