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Catapult Group (CAT) $1.635

The sports tech company has quietly turned into one of the star performers in the Emerging Companies Portfolio, now sitting on a ~45% gain, with the stock up around 30% over the last few weeks, hitting 2-year highs in the process. The company runs to a March year-end, so we expect to see FY24 results published in around 6 weeks. There’s been little news to drive the share price, though Bell Potter upgraded their price target this week while retaining a hold / neutral recommendation on the stock despite saying their numbers are likely ‘conservative.’

Looking ahead, the market is expecting ~18% revenue growth, driving a net loss improvement from $US31m in FY23 down to ~$US10m in FY24, and while the market is expecting small negative free cash flow (FCF), the company has guided to positive FCF this year. At the half-year result, the company was enjoying a positive sales period with both new customer wins and successfully upselling to their base. Given this sales momentum, we see upside risk in the upcoming result, though if shares continue to push higher into May, much of this would be built into the share price.

  • Catapult has surged back into favour over the last 12 months, we are happy to hold into FY24 results next month.
MM is long and bullish CAT
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Catapult Group International (CAT)
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