What does MM think of BVS after its savage decline?

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Question asked 26/03/2022

What does MM think of BVS after its savage decline?

Can you give your current view on BVS and whether there is any light going forward. Shares have been in decline for sometime and I cannot find any view on their latest results. Their performance was apparently heavily influenced by the virus in the UK but surely that should now be in the past.

Answer

Hi Graeme,

Their recent 1H 22 result was a miss and their guidance implied a big uplift in costs for the FY. They are now trading on 15x which is a big discount to their 5 year average of 21x. The issue is market confidence. A string of downgrades means the market has lost faith. For this stock to turnaround, they need to start meeting the guidance they put out to the market. For FY22 their stated guidance is for adjusted EBITDA of $45-50m & net income of $25-30m. The next main data point will be at their FY results in August.

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Bravura Solutions (BVS)

LAST UPDATED 25/03/2022 17:37

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