Firmus
Firmus? What a question. Is the hype to be believed? What are your thoughts on the Firmus IPO? Thanks
The Latest Q&A
Answer
Hi,
The valuation of Firmus is dividing the market, our view is simple and succinct – sit back and watch, we have no interest until we see some earnings evolve. Chasing the next “hot thing” has a low strike rate from an investment perspective, and while they do at times score home runs there’s always time to board the train between stops.
Firmus is seeking a $43.7 billion valuation, setting a price of $11 per share for its initial public offering. Firmus forecasts operating revenue of $US229.7 million for the 1HFY26, up from just $US50 million over the entire last year, great growth but it will need to execute successfully to justify its lofty price tag.
In terms of trading performance from the IPO, we think it will probably do okay initially, but valuation will keep us on the sidelines.
