S&P/ASX 200 Index (ASX: XJO) stock Altium Ltd (ASX: ALU) has just been upgraded by four leading brokers.
Jeffries raised the electronic design software platform provider's stock to a 'buy' with a price target of $44.69 a share.
RBC raised Altium to an 'outperform' rating, with a $45 price target.
And CLSA raised the ASX 200 stock to a 'buy' with a $45 price target (courtesy of The Australian).
$45 would represent a 22% upside to yesterday's closing price of $36.88.
But here's the thing.
The Altium share price has just soared past all of those upgrades.
In early trading today, Altium shares were changing hands for $47.69 apiece. At the time of writing, Altium shares are trading for $46.42, up a stellar 25.9%, and well above the broker targets.
So, what's going on?
Why is this ASX 200 stock going through the roof today?
Investors are bidding up the Altium share price following the release of the company's full-year financial results (FY23), released after market close yesterday.
Among the highlights, Altium reported revenue of US$263 million, up 19.2% from FY22.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) of US$96 million were up 20.3% year on year.
Atop the strong FY23 result, investors may also be bidding up the ASX 200 stock following some positive guidance for the year ahead.
Management is forecasting FY24 revenue of US$315 million to US$325 million. That represents annual revenue growth of 23% on the higher end of that guidance.
And Altium is forecasting a strong underlying EBITDA margin of 35% to 37% in FY 2024.
The strong results also saw Goldman Sachs up its price target for Altium shares, though the broker retained its 'neutral' rating.
Goldman now has a $47.00 price target for the ASX 200 stock. That's slightly above the current level but below intraday highs from this morning.
Altium share price snapshot
You're unlikely to hear any Altium shareholders complaining after today's big moves.
The ASX 200 stock is now up 56% in 12 months.
