Objective's Near-Term Margins to Face Pressure After Defense Contract Loss, Says Jefferies

MT Newswires Live

Jul 02

Objective (ASX:OCL) is expected to face near-term margin pressure after losing a highly profitable subscription contract with the Defence Digital Group of the Australian Department of Defence, Jefferies said in a note on Wednesday.

Fiscal 2026 is expected to be unaffected, but fiscal 2027 growth is projected to be impacted as annual recurring revenue is now seen to reset to fiscal 2025 levels, the investment firm said.

Jefferies lowered its fiscal 2027 to 2028 revenue estimates by 9% to 13% and sees fiscal 2026 to 2028 EPS to decline by 28% to 31%.

The expected margin compression reflects both the quality of the lost revenue and the limited ability for the company to replace it with contracts of similar margin in the near term, it added.

The brokerage maintained its hold rating but cut its price target to AU$7 from AU$14.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.itiger.com/news/2648524161"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2648524161\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2648524161?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-07-02 06:33","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2648524161","market":"us","top_or_hot":-1,"title":"Objective's Near-Term Margins to Face Pressure After Defense Contract Loss, Says Jefferies","media":"MT Newswires Live","content":"<html><body><p> Objective (ASX:OCL) is expected to face near-term margin pressure after losing a highly profitable subscription contract with the Defence Digital Group of the Australian Department of Defence, Jefferies said in a note on Wednesday.</p><p>Fiscal 2026 is expected to be unaffected, but fiscal 2027 growth is projected to be impacted as annual recurring revenue is now seen to reset to fiscal 2025 levels, the investment firm said.</p><p>Jefferies lowered its fiscal 2027 to 2028 revenue estimates by 9% to 13% and sees fiscal 2026 to 2028 EPS to decline by 28% to 31%.</p><p>The expected margin compression reflects both the quality of the lost revenue and the limited ability for the company to replace it with contracts of similar margin in the near term, it added.</p><p>The brokerage maintained its hold rating but cut its price target to AU$7 from AU$14.</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Objective's Near-Term Margins to Face Pressure After Defense Contract Loss, Says Jefferies</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nObjective's Near-Term Margins to Face Pressure After Defense Contract Loss, Says Jefferies\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1092851196\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">MT Newswires Live </p>\n<p class=\"h-time\">2026-07-02 06:33</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><p> Objective (ASX:OCL) is expected to face near-term margin pressure after losing a highly profitable subscription contract with the Defence Digital Group of the Australian Department of Defence, Jefferies said in a note on Wednesday.</p><p>Fiscal 2026 is expected to be unaffected, but fiscal 2027 growth is projected to be impacted as annual recurring revenue is now seen to reset to fiscal 2025 levels, the investment firm said.</p><p>Jefferies lowered its fiscal 2027 to 2028 revenue estimates by 9% to 13% and sees fiscal 2026 to 2028 EPS to decline by 28% to 31%.</p><p>The expected margin compression reflects both the quality of the lost revenue and the limited ability for the company to replace it with contracts of similar margin in the near term, it added.</p><p>The brokerage maintained its hold rating but cut its price target to AU$7 from AU$14.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7016","symbol_name":"应用软件","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2648524161","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2648524161","pubTimestamp":1782945234,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"Objective  is expected to face near-term margin pressure after losing a highly profitable subscription contract with the Defence Digital Group of the Australian Department of Defence, Jefferies said in a note on Wednesday.Fiscal 2026 is expected to be unaffected, but fiscal 2027 growth is projected to be impacted as annual recurring revenue is now seen to reset to fiscal 2025 levels, the investment firm said.Jefferies lowered its fiscal 2027 to 2028 revenue estimates by 9% to 13% and sees fiscal 2026 to 2028 EPS to decline by 28% to 31%.The expected margin compression reflects both the quality of the lost revenue and the limited ability for the company to replace it with contracts of similar margin in the near term, it added.The brokerage maintained its hold rating but cut its price target to AU$7 from AU$14.","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7016":"应用软件","OCL.AU":"OBJECTIVE CORPORATION LIMITED"},"translate_title":"杰富瑞表示，国防合同损失后，目标公司的近期利润率将面临压力","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OCL.AU":1},"content_text":"Objective (ASX:OCL) is expected to face near-term margin pressure after losing a highly profitable subscription contract with the Defence Digital Group of the Australian Department of Defence, Jefferies said in a note on Wednesday.Fiscal 2026 is expected to be unaffected, but fiscal 2027 growth is projected to be impacted as annual recurring revenue is now seen to reset to fiscal 2025 levels, the investment firm said.Jefferies lowered its fiscal 2027 to 2028 revenue estimates by 9% to 13% and sees fiscal 2026 to 2028 EPS to decline by 28% to 31%.The expected margin compression reflects both the quality of the lost revenue and the limited ability for the company to replace it with contracts of similar margin in the near term, it added.The brokerage maintained its hold rating but cut its price target to AU$7 from AU$14.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}