AU : Catapult Group International - Back in growth mode, both topline and cost base
CATs FY21 result has proven the resiliency of the business in troubled times for their end markets. ACV churn of 5.5% and the ability to increase FCF generation being key quality indicators. The momentum seen in 2H’21 (ACV +17.5% in the half) and US sports re-opening to spectators, sees topline growth into FY22 well supported. CAT is now likely to push harder on the investment front in the near term than we had previously expected, with a stated ACV opportunity 10x the current figure, constructive GM’s and contribution margins, we are supportive of this push. Despite the current re-rate reducing valuation appeal, we maintain the Add rating, increasing our target price 16% to $2.46.
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