Livehire's second quarter update provides Morgans with the first material evidence of the revenue potential of the North American direct sourcing product.

Despite slightly higher churn and lower average value per client than the broker forecast, the SaaS business had better-than-expected client additions in the quarter.

The analyst highlights cash burn has been dramatically curtailed, and believes the company is funded to cash flow breakeven and beyond.

The Add rating is unchanged and the target price rises to $0.53 from $0.50.

Sector: Software & Services.

Target price is $0.53.Current Price is $0.30. Difference: $0.23 - (brackets indicate current price is over target). If LVH meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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