CATAPULT GROUP INTERNATIONAL LIMITED (CAT)
Share Price Analysis and Chart

15/11/2024

1

Buy

$3.30

-2.65%

Catapult International reported 1H25 results with revenue advancing 16% to US$57.8m, exceeding Bell Potter's forecast by 2% due to stronger revenue from Tactics & Coaching.

EBITDA increased 100%, surpassing the analyst's estimate by 14%, driven by better revenue generation and lower operating expenses.

Both free cash flow and annual contract values grew strongly and exceeded forecasts, with the balance sheet moving to a net cash position.

The broker raises EBITDA forecasts by 6% and 2% for FY25/ FY26, respectively, and notes the potential for Catapult International to be added to the S&P/ASX 300 in the next rebalance in December, though March appears more likely.

Buy rating remains unchanged. Target price rises to $3.30 from $2.88 due to a lower cost of capital assumption.

FORECAST
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -7.69 cents.
Bell Potter forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -3.77 cents.

18/11/2024

1

Buy

$3.50

3.24%

Canaccord Genuity observes Catapult International's 1H25 results outperformed expectations, with annualised contract value up 20% to US$97m and revenue rising 19% to US$58m, driven by subscription growth and efficient cost management.

EBITDA increased 68% to US$14m, with free cash flow turning positive at US$4m.

Performance and Health recorded 23% growth, while Tactics and Coaching rose 20%. The company's focus on wearables and video products offers a US$75m upside in annual contract values over the next three to five years, the broker highlights

Price target lifts to $3.50 from $2.50, reflecting a strong outlook. Buy rating unchanged.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -5.88 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -0.60 cents.