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MFG and NXL

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MFG and NXL

Hi James and Team , Firstly I enjoy your daily analysis of the market and the accompanying commentary. Please allow me two questions. 1. Magellan financial (MFG) - with the departure of the COO /CFO does that change your view at all on the future prospects of the company and on the website there is no mention of how many brokers cover the co only that it is a hold. 2. Nuix (NXL) during the week after the AGM there has been major fluctuations in the share price . are there more to see under the hood? Keep up the good work Cheers Christof

Answer

Hi Christof,

1. Magellan financial (MFG) – we have covered MFG in a similar question today, though importantly, the departures are business related, not investment staff specifically.  We remain happy with our positions at this stage, especially after the stock bounced strongly on Thursday/Friday.

2. Nuix (NXL) as you said NXL traded in a  dramatic 25% range on Wednesday, not for the fainthearted. However the stock has rallied four-fold in 2024 hence there was plenty of room for some aggressive profit-taking.  The problem was the  CEO, Jonathan Rubinsztein,  warned that “Nuix’s sales are not linear over the course of the year, and our current expectations are that growth will be weighted towards the second half of the fiscal year.” a concern considering the year-to-date.

Ultimately, we saw analysts reduce their FY25 revenue and Cash EBITDA forecasts only slightly (1 and 3% respectively), factoring in a slightly greater skew to the 2H vs prior. These are not material changes.

  • We are neutral NXL after recent moves, but the business is still performing well.
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Nuix Ltd (NXL)
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