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Watching closely. For once, I tend to agree with this Motley Fool post;
[Snippet]
“Our view of the stock remains positive. We believe the share price has been severely punished on small changes in revenue composition.”
She told The Motley Fool the Nuix share price is expected to head back up as the full-year results are delivered in August.
“This business is one of the cheapest tech businesses listed on the ASX. It’s trading at half of the revenue multiple as many major tech businesses, [but] with higher growth.”
Prime Value portfolio manager Richard Ivers is also still a believer.
“Long term it’s still an attractive business,” he told The Motley Fool.
“We didn’t get a great allocation in the IPO and didn’t chase the stock when it listed. So [we] haven’t owned it the last few months – still watching.”
“The issue we are working to understand is the earnings profile and therefore the valuation of the business.”
Liu said that two factors had contributed to the half-year results coming in poorer than the prospectus revenue forecast.
“Firstly, the Australian currency has strengthened against the US dollar — and a big part of Nuix’s revenue is in US dollars,” she said.
“Secondly, the US election in November last year has disrupted the timing of contract awards (many of those missed contracts have now been signed in January). If you adjust for these two factors, the revenue was largely in line with forecasts.”
Only a couple of days before the half-yearly results, Morgan Stanley had put an overweight rating and a share price target of $11.00 on Nuix shares.
[Snippet]
Nuix is a cheap technology share
Tribeca Investment Partners’ Alpha Plus portfolio manager Jun Bei Liu still has faith in Nuix.“Our view of the stock remains positive. We believe the share price has been severely punished on small changes in revenue composition.”
She told The Motley Fool the Nuix share price is expected to head back up as the full-year results are delivered in August.
“This business is one of the cheapest tech businesses listed on the ASX. It’s trading at half of the revenue multiple as many major tech businesses, [but] with higher growth.”
Prime Value portfolio manager Richard Ivers is also still a believer.
“Long term it’s still an attractive business,” he told The Motley Fool.
“We didn’t get a great allocation in the IPO and didn’t chase the stock when it listed. So [we] haven’t owned it the last few months – still watching.”
Reasons for Nuix’s poor half-yearly result
Ivers acknowledged the first-half result was “disappointing”.“The issue we are working to understand is the earnings profile and therefore the valuation of the business.”
Liu said that two factors had contributed to the half-year results coming in poorer than the prospectus revenue forecast.
“Firstly, the Australian currency has strengthened against the US dollar — and a big part of Nuix’s revenue is in US dollars,” she said.
“Secondly, the US election in November last year has disrupted the timing of contract awards (many of those missed contracts have now been signed in January). If you adjust for these two factors, the revenue was largely in line with forecasts.”
Only a couple of days before the half-yearly results, Morgan Stanley had put an overweight rating and a share price target of $11.00 on Nuix shares.