Just read that "Business Model/Strategy" straw by DRN1 for BVS - Just a quick tip - if your link is to something on a site that has a paywall or a log-in requirement (i.e. where the user needs to have set up an account), like Commsec, then it won't work unless the person clicking on the link has a commsec account, and is logged in to their account, and has a commsec membership level that allows access to that Goldman Sachs report (in this example). Including links from sites that do not have a paywall or a log-in requirement is fine. However, I can't find that GS report on any free sites - so in this case there might not be a better option. I'll try to include the file as an attachment to this straw.
In the meantime, if you click here, you can get a list of Bravura's own presentations and reports.
Sonata reaching scale and contributing increasingly significant portion of revenues, dragging Bravura's growth profile upwards at company level as revenue mix continues to evolve. Corporate costs are relatively flat (mature) and business is highly sclalable. Sttong gross margins and offers stable dividends. Needs continued contract wins to justify current valuation.
Goldman Sachs Analysis - 2 April 2020
- 27.7% cut to the share target price from $6.90 to $5.40 due to Covid impacts
- 1H20 Strong Balance sheet with A$100.3 mn net cash
- remain positive on BVS’ medium term pipeline of opportunities and see its defensive attributes (high levels of recurring income, with clients typically on 7-10 year contracts, low churn rate) as favourable in this current environment.
- Regulatory change continues to be a structural driver
- Global product offering: BVS has invested c. A$160mn developing its core Sonata product. Sonata is built on an open source platform, with an increasing % of new functionality funded by individual clients, which can then by rolled out to BVS’ other clients.
-Continued improvement on margins: the company has noted that as its customer base continues to scale, it should see improvement in margins on maintenance revenue.
Key downside risks: Rapidly changing technology requires ongoing investment; Fewer contract wins (since forecasts are contingent on the ability to win new clients); Contract losses