Sectors: Technology

CAR rallied another +2.9% on Monday, also posting a fresh all-time high. The stock’s dividend in mid-September isn’t a major factor, with a yield of just over 2%. We wouldn’t consider adding to our 4% position in CAR but anticipate a further 5-10% upside before considering taking some profit.

Reported Q2 results after market in the US overnight, and while the stocks was up 2.3% ahead of the results, they traded down after hours by ~5%.

MP1 -20.95% plunged after guidance missed estimates, with the connectivity provider forecasting EBITDA for 2025 of $57-65mn, well below analyst expectations. The FY24 numbers were ok, but all eyes were on the guidance.

WTC +18.36%: A big rally today on a largely inline FY24 result, though earnings guidance for FY25 was ahead of expectations, while they talked up new product launches which is likely to drive an acceleration in growth;

We’re surprised by the extent of the rally today – though we’re pleased to see it – with the main positive new news (vs the recent downgrade to FY25 expectations) being the ongoing positive momentum in video in 2H24 and the inclusion of ‘disciplined examination of M&A opportunities’ as part of their guidance.

We have discussed data centre operator NXT a few times over recent months as an alternative to both Xero (XRO) and Goodman Group (GMG). Although they are undoubtedly different businesses, they have been positively correlated over the last year, especially with GMG. The market will be looking for growth outside of Sydney later this month, which shouldn’t be too hard to achieve, in our opinion.

NWL -5.57%: shares were lower on slightly weaker than expected FY24 earnings, though FY25 has started well by the look, and indications around flows look positive.

SEK -6.64%: Lower than expected earnings for FY24 and a decent downgrade to FY25 guidance – the stock was righty sold off, and probably a little underdone on the selling, though we were not on the call today to hear what was s