Audinate Group Ltd (AD8) and IDP Education Ltd (IEL)
Thanks, James, for your input. Is AD8 going to turn around and worth investing? Is IEL affected by AI to be price lower and what will be a good entry point? Thanks.
The Latest Q&A
Answer
Hi John,
Two very battered up stocks here.
Audinate Group (AD8): this Australian technology company develops and licenses its Dante digital audio and video networking platform, enabling professional AV devices to transmit high-quality media over standard IP networks. Audinate shares have come under pressure as growth has stalled, margins have softened and the market questions the pace of recovery in its core pro-AV hardware business. With earnings downgrades and a transition toward software taking longer than hoped, investors have been quick to reset expectations and de-rate the stock.
- AD8 is scheduled to report earnings next week and we need to see the company demonstrate a return to consistent growth and execution, especially in newer product areas – at present it’s in the “too hard” basket, but we think best to wait for results before making any real judgements.
IDP Education Ltd (IEL): This global education services company provides international student placement and operates the IELTS English language testing system, generating revenue from university recruitment and testing services worldwide – not an ideal place to operate as tighter student visa policies in key markets like Australia, Canada and the UK have materially reduced international student flows, slowing placement volumes and earnings growth. With ongoing regulatory uncertainty and governments actively capping migration intake, the market has de-rated the stock amid concerns that headwinds will remain for the foreseeable future.
- IEL has looked interesting as an aggressive play ~$5 over recent months, however we’ve held off because we think the turnaround is more an FY27 story than FY26. They report on the 26th Feb, when they’re expected to deliver profit for the half around $34m, a big drop (-40%) from the same time last year. That number is now priced in, and the market is not that optimistic for the full year. The commentary around this result will be very important as the market looks for a turnround that has so far proven elusive. Certainly a result we’re interested in.
