ADH and NXL
Hi, I was wanting to get your thoughts on two very different ASX listed securities that have had good recent performance: NXL (Nuix) ADH (Adairs) Thanks!
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Answer
Hi Libby,
NXL (Nuix) $6.83: this $2.2bn data analytics software stock has traded with increasing volatility after its recent strong run, lines of ~1mn shares at $6.84 and $6.55 crossed over the last 6-weeks. In August its FY24 result revenue grew almost 21% and EBITDA over 60% as it continues to successfully rollout Nuix Neo; there are three core use cases for Nuix Neo, data privacy, investigations and legal.
- We like NXL’s growth profile but it’s likely to remain very volatile, our ideal entry would be in the $6-6.50 region.
ADH (Adairs) $2.65: this $464mn retailer of manchester and homewares has popped nicely in the last 2-weeks although it’s still had a tough few years since its top ~$5 in 2021. Ironically in its September FY24 result revenue was inline but earnings missed expectations by ~10% which sent the stock down under $1.70, the rally on huge volume over the last few weeks looks great and even led to a price query from the ASX.
- We can see ADH testing $3 in the coming months but it’s not a stock we know particularly well.
