Pinned straw:
Cannacord Price target NZ $11.00 (from NZ $7.50) or AUD $10.20
Saving the best for last on the long weekend.
[held]
I now get the whole "this is not a mining company and should be worth more".
Plus I get the simpleton argument about GTK having Workday and SAP for lunch on my news feed.
But at $9 again? This is now way out of my comfort zone. Some FOMO buying and missed my buy top-up.
Approaching PME high PE Strawman sell level again.
Someone following the same factiva newsfeed as me on Gentrack
Decided to calm down on my rant about CMM and GTK and played around with Tikr.
From the report, CG is using EV/Revenue as a metric:
Consistent upgrades illustrate customers want more of what GTK is selling with a strong product market fit. We expect large revenue and earnings upgrades to follow on from today’s result, with consensus FY25 revenue forecasts below GTK target of >$230m. The stock trades on an undemanding EV/revenue multiple of 3.8x, well below its peer group despite ongoing upgrades
Not sure which companies to pick for the peer group so decided to do my own. I decided to exclude ORCL (Oracle) who have Fusion Apps,Cerner, Netsuite and lots of other stuff since they are also a Cloud and Infrastructure Provider but their multiple is pretty high anyway. I also thought I'd include EVS just for fun with all that banter going on.
Also due to the current price (52 week high 9.30), the EV/Revenue multiple is a lot higher than 3.8x (4.4x)
Any others I missed?
