The Australian Focus List contains our top-15 stock picks across a diverse group of sectors. This quarterly report provides a one-page summary of each pick and includes our investment recommendation, potential catalysts, and bull/base/bear target price scenarios. One of those picks is SpeedCast International (ASX: SDA). SpeedCast has experienced rapid growth over recent years and has established itself as a global, top-tier satellite communications provider servicing a broad range of industries including maritime, government, telecommunications, energy, mining, NGO and defence. We forecast revenue growth of 39% in 2016 and see margin expansion opportunities as SDA achieves scale benefits, and key input costs reduce. SDA’s share price has declined recently, leading to its CY17 EV/EBITDA falling to just 8.1x. With a CY17 PE of just 12.8x, we view the stock as very cheap given its growth prospects and possible positive catalysts. Read the full list of 15 stocks in the attached document.
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