Down 19% in a month, should you pounce on this ASX 200 tech stock?

Is it time to pounce on this beaten-down stock? Let's see what analysts are saying.

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The Audinate Group Ltd (ASX: AD8) share price was out of form again on Tuesday.

The ASX 200 tech stock ended the day 3.5% at $15.42.

This latest decline means that the audio-visual networking solutions provider's shares are now down 10% this week and almost 19% since this time last month.

Why is this ASX 200 tech stock sinking?

Some of this week's decline could have been driven by a piece of news released on Monday.

That news revealed that the company's chief financial officer (CFO) and company secretary, Rob Goss, has tendered his resignation for personal reasons.

The company notes that Mr Goss joined Audinate in 2017, serving as CFO during the initial public offering (IPO) process and has made a significant contribution to the company.

The good news is that Goss will stay through the upcoming results season, completion of the annual report, preparation for the annual general meeting, and will assist in transitioning the CFO role and responsibilities.

The ASX 200 tech stock revealed that the search for a new CFO will commence shortly.

Audinate's CEO, Aidan Williams, was disappointed with the news but optimistic on the future, noting that Goss is departing with the company in a strong financial position. He adds:

Rob has played a key role in the financial stewardship of Audinate over the last seven years. On a personal level, I want to thank Rob for his contributions over the years and on behalf of the board and executive team wish him the best in his future endeavours.

Is this a buying opportunity?

While the recent weakness is disappointing for shareholders, it could prove to be a buying opportunity for the rest of us. That's because a number of brokers believe that this ASX 200 tech stock is undervalued at current levels.

For example, this morning, analysts at Morgan Stanley revealed that they remain positive on Audinate despite the exit of its CFO.

According to the note, the broker has retained its overweight rating and $22.00 price target. This implies a potential upside of almost 43% for investors over the next 12 months.

To put that into context, a $10,000 investment would turn into approximately $14,300 if Morgan Stanley's recommendation proves accurate.

Elsewhere, UBS has a buy rating and a $22.80 price target on Audinate's shares. This suggests that the ASX 200 tech stock could rise by almost 48% between now and this time next year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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