Where to from here for Audinate (AD8)?

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Question asked 09/02/2024

Where to from here for Audinate (AD8)?

Hello Again, Thank you for your answers to all my messages this week. I'm preparing for reporting season, and after taking some profits during the Christmas rally, I'm looking for buying opportunities now. Audinate has corrected 15% since its high on 15 January 2024, presumably due to the market realisation that interest rates cut projections were too dovish. The company reports on 12 Feb. and I am wondering if even a good result won't be enough to turn the current trajectory. At what level would you start accumulating AD8 again? Thanks, AR Hi James and Team, Can I have your current view on Audinate. It reached an all time high of $17.94 on 15/1/24 but has fallen to $15.24 today (6/2/24). The stock was cut to neutral at Macquarie with a PT $15.80. regards, DG

Answer

Hi Guys,

AD8 has slipped over -15% since its investor briefing of its 1H FY24 results in mid-January. Ahead of its report next week we can see further weakness but its important to acknowledge that AD8 has more than tripled in less than 18-months hence pullbacks are likely, depending on the result we may consider tweaking our exposure higher if we see ongoing weakness under $14.

We remain bullish towards AD8 but are glad we trimmed our position down to 3% in our MM Emerging Companies Portfolio in late 2023.

Macquarie may have cut AD8 to neutral but their Price Target (PT) was increased by 17% – their concerns were around reinvestment requirements and margin risk, we would add valuation after the stocks advance.

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Audinate Group Ltd (AD8)

LAST UPDATED 08/02/2024 17:04

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