Sectors: Technology

Following its solid/inline FY24 result on Monday, CAR rallied +4.5%; as we said yesterday, we believe their flagged outlook for ‘good growth’, which MM believes, could prove conservative.  When we look at CAR’s relative valuation over the last five years, it may be on the expensive side of the ledger, but it’s nowhere near stretched, i.e. it was trading on a higher valuation earlier in 2024 and especially in 2021.

Last week, we saw REA deliver a solid result, which included revenue of $1.45bn and Core Net Profit After Tax (NPAT) of $461 million, up +24% yoy, both of which were slight beats. The property market is on a solid footing for REA with homes selling noticeably faster than the average over the last six years while listings remain strong and rate cuts are likely to stoke the fire even further. REA is expensive, particularly when we compare it to our other play on the same space in the US via Zillow (ZG US).

The slow but sure demise by DHG compared to the rise of REA feels like a “Death by a thousand cuts” – not a great investment by Fairfax as opposed to Newscorp’s major stake in REA; both media giants own over 60% of the respective platforms.

FY25 guidance is very light on relative to expectations. SEK is forecasting underlying revenue from continuing operations of $1.02 billion to $1.14 billion, with consensus already right at the high end, and underlying Ebitda of $430 million to $500 million, which at the mid-point is an 11% miss to current consensus of $527 million.

CAR +4.46%: A solid/inline FY24 result today, and while they stuck to their usual script around the outlook for ‘good growth’ we got the sense they could actually deliver ‘very good’ growth given how well the international businesses are doing, and the better outcome from the dealer network than feared in Australia.

360 +18.09%: Cracking 1H24 result with CY24 revenue and EBITDA guidance upgraded.

The advertising Technology company reported 2Q results after the close that were strong, above expectation for the period, and Q3 guidance beat consensus. Shares are trading 10% higher in after-hours trade

Medical imaging software provider PME has been enjoying solid success, which has contributed to the stock’s +28% advance year-to-date, even after the 15% decline over the last fortnight. For subscribers not familiar with PME, it’s now a $12bn business that generates revenue from software used in medical imaging practices made up of a subscription fee plus a small fee charged per each medical image done on its platform.