TNE has bounced ~35% from its mid-February low after it struck a confident tone at its AGM, guiding to the top end of its full-year profit growth range and highlighting a strong second-half outlook. Recurring revenue momentum remains solid, reinforcing TNE’s position as one of the highest-quality SaaS names on the ASX. The company managed to allay many of the fears around AI disruption with TNE providing mission-critical ERP software to governments, councils, universities and utilities, running core finance, HR and student systems. These platforms are deeply embedded with high switching costs, making them very sticky and limiting near-term AI disruption.
- We feel TNE has already found an inflection point ~$20, but the risk/reward will look attractive if we see another dip toward the $25 area.
MM would get bullish TNE from $25
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