For subscribers unfamiliar with CAT, it’s the global leader in sports technology solutions that allow coaches to see how players are performing on the field. Remember, sports is a huge business, especially overseas; Manchester United has a market cap of $US2.9bn with 1-2 goals making/losing huge revenue. CAT’s most recent contract win was with England’s national and top-tier rugby teams as it expands globally; in FY24, well over 55% of its revenue was generated from the vast US market, with further growth projected in 2025. We can see tremendous upside potential for this stock, and its share price has reacted accordingly.
The stock popped earlier this month after the company reported its 1H25 results: Revenue beat expectations, increasing by 19% on a constant-currency basis to $57.8 million. This ~$930mn company is positioned strongly for ongoing growth while it can remain ahead of the curve on the technological front – never a given but so far so good.
- We can see CAT trading above $4 into 2025, and we still believe it’s a buy today – MM is long CAT in our Emerging Companies Portfolio.
MM is long and bullish CAT
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