Pre-announced 1H results for Nuix revealed a return to growth for revenue and annualised contract value (ACV), along with cost reductions.

Management's 1H FY23 ACV guidance was around 6.5% ahead of Morgan Stanley's forecast, while statutory earnings (EBITDA) guidance was a 10% beat.

While the broker expects ongoing stock price volatility until legal matters are cleared, the 1H result is considered a constructive start by the new management team.

The target rises to $1.00 from 90c. Equal-weight.

Target price is $1.00.Current Price is $0.94. Difference: $0.06 - (brackets indicate current price is over target). If NXL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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