NWL is a business that can be described as a mixture of tech and investment management services both of whom have been in the “naughty corner” of late but as markets attempt to stabilise we believe the stock is poised to recoup a decent portion of its 45% post-COVID decline. While the stocks not cheap it is the country’s fastest growing platform provider having increased its market share from 4.6% to 5.8% over the financial year. We like the fundamentals behind this $3.2bn business which produces excellent cash generation courtesy of high levels of recurring and predictable revenue. The only question around the stock is what’s a fair valuation and our feeling is the market will be more lenient on this front into Christmas.
- While we like NWL initially looking for a test of the $15.50 – 16 area, our preference in the sector is HUB.
MM is bullish NWL from around $13
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