Catapult winning off the field

Morgans Senior Analyst, Ivor Ries, has been reviewing the fundamentals of Catapult following the ~44% fall from its highs in August last year. In his view, nothing has changed. “The share price fall we’ve seen is simply a result of having Goldman Sachs do a $100m share placement, mostly to US institutions.” While expenses increased last year, it was not enough to account for the price fall. In the last six months, Catapult have won 75-80% of all new mandates – these mandates are ongoing arrangements, so should produce recurring revenues. He sees catalysts ahead, with a number of potential deals for league-wide deals, which should produce a significant uplift in revenues. He says the current share price is not reflecting the potential of this business and has placed a valuation/price target of $4.32 on the stock. “For people who are prepared to wait a year or two, this is going to be a great performer.”