Nearmap Ltd

NEA Details
·         Business update for the third quarter of FY17:Nearmap Ltd (ASX: NEA) stock surged over 13.6% on March 29, 2017 after the company gave the business update for the third quarter. NEA is on track to record its strongest trading quarter in the financial year-to-date with the addition of $3m of incremental Annualised Contract Value (ACV). The strong results are due to the Australian and US businesses, both of which grew in terms of incremental ACV ahead of their H1 run rate.Moreover, the group sales productivity grew to greater than 100% in both Australia and the US. The company has reaffirmed the FY17 EBITDA guidance of $4.5-6.5m.

·         Recommendation: NEA stock fell 32.82% in the last three months (as of March 28, 2017) opening a lucrative bargain opportunity. We give a “Buy” recommendation on the stock at the current price of – $ 0.50
 

1H 17 Financial Performance (Source: Company Reports) 

Gentrack Group Ltd

GTK Details
·         Acquisition of Junifer Systems Ltd:Gentrack Group Ltd (ASX: GTK) stock rallied over 6.2% on March 29, 2017 owing to the latest move by the company of entering into an unconditional agreement to acquire Junifer Systems Ltd for an Enterprise Value of NZ$74.6m. GTK expects the acquisition to be accretive in FY2017, and would lead to better growth in earnings in FY2018, and beyond. The settlement is expected to occur in April 2017. The management of Junifer would join the Gentrack UK management team to lead the combined business in the UK.

·         Recommendation: GTK stock rose over 12.54% in the last six months (as of March 27, 2017), and currently trading at a higher level close to its 52-week high price. We believe that the stock is “Expensive” at the current price of – $ 3.62

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