This report is an updated version of the report published on 1 October 2025 at 11:28 AM AEST.

Acusensus Limited (ASX: ACE)

Acusensus Limited (ASX: ACE) develops intelligent solutions that provide digital evidence to support law enforcement and improve road safety. Its technology detects distracted driving, seatbelt compliance, speeding, and more, enabling prosecutable evidence. The company is also engaged in developing road worker safety systems using sensors, connected wearables, and real-time analytics to protect crews in live traffic environments.

Recommendation Rationale – SELL at AUD 1.290

• Technical Standpoint: ACE’s share price is approaching its R2 level, recommended on 19 September 2025. Also, the momentum oscillatory (14-day RSI is around 80.29 level), indicating an overbought zone. This shows increasing the likelihood of near-term consolidation or technical pullback.
• Overvalued Multiples: On a forward 12-month basis - key valuation multiples (EV/EBITDA, and Price/Cash Flow) are higher than median of the Technology Sector.
• Increase in Losses: The company recorded a net loss after tax of AUD 2.6 million in FY25, compared to a loss of AUD 1.5 million in FY24. Ongoing financial losses pose risks by straining resources, constraining growth opportunities, and potentially necessitating additional funding or capital raising to support operations.
• Emerging Risks: Key risks for ACE include widening operating losses, higher debt levels, rising operating expenses, intellectual property risks, intense industry competition, execution challenges in scaling operations, regulatory changes, and potential delays in achieving profitability targets.

ACE Daily Chart

Valuation Methodology: EV/Sales Relative Valuation Approach (FY June'26E) (Illustrative)

Stock might trade at a slight discount to its peers, considering the widened losses in FY25, higher operating expenses, intellectual property risks, year-on-year increase in debt levels, and other factors. For valuation, few peers including Atturra Ltd (ASX: ATA), Adveritas Ltd (ASX: AV1), Integrated Research Ltd (ASX: IRI), and others have been considered.

Considering that the stock is trading close to its R2 level, macroeconomic uncertainty, share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 1.290, at 10:40 AM AEST, as of 1 October 2025.

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 1 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.