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Does MM still like Gentrack (GTK)?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Does MM still like Gentrack (GTK)?

Thanks for the daily report and insightful commentary. In the afternoon report on 22/5/23 you mentioned that you still liked Gentrack but had missed the opportunity to buy. Based on previous reports you provided on GTK, I actually purchased this at significantly lower levels. How do you see the performance going forward? Would you continue to hold if you had bought? Thanks. Peter

Answer

Hi Peter,

This week saw GTK, the New Zealand-based billing business that powers utilities (water, Gas, Electricity) etc rally strongly on a very strong 1H23 result. Revenue at $84.3m (+48% YoY) was well ahead of forecasts ($73.3m), driven by the Utilities division. Margins were good and FY24 targets were also upgraded – GTK now expects revenue of $160m, up $10m on previous expectations.

Congratulations on a great entry, if MM had bought in such a timely manner we would be holding, remember this year the ASX has seen a clear trend of the strong getting stronger, & vice versa. It is still not expensive after its rally.

Subscribers can read our past opinions and get fundamental insight on the stocks via the company page here,

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Gentrack Group Ltd (GTK)
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