BRAVURA SOLUTIONS LIMITED (BVS)
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15/08/2024

3

Neutral

$1.32

-14.29%

Bravura Solutions' FY24 result was broadly in line with guidance. FY25 earnings guidance is ahead of Macquarie's expectations, despite revenue guidance being below.

The balance sheet is in a strong position and will be further strengthened by the receipt of licence fee payments from Fidelity. This will fund a $20m buyback in FY25, the broker notes.

Earnings continue to be supported by better-than-expected outcomes on costs. Valuation appeal is emerging, however Macquarie needs to see evidence of sustainable top-line growth to take a more positive view.

Target rises to $1.32 from $1.26, Neutral retained.

FORECAST
Macquarie forecasts a full year FY25 dividend of 2.80 cents and EPS of 4.70 cents.
Macquarie forecasts a full year FY26 dividend of 3.00 cents and EPS of 5.00 cents.

19/08/2024

1

Overweight

$1.47

-4.55%

Bravura Solutions' FY24 numbers were all in line with guidance and consensus. The annualisation of further cost out remains the key financial driver in the short term, Wilsons suggests.

The broker sees FY24 as the year of stabilisation, FY25 as the year of consolidation and incremental investment, and FY26 as the year when Bravura returns to top-line growth and favourable operating leverage comes through.

The company announced a capital buyback of $20m with the flagged, but yet-to-be-approved $75m capital return expected in March quarter.

Target rises to $1.47 from $1.43, Overweight retained.

FORECAST
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.10 cents.
Wilsons forecasts a full year FY26 dividend of 3.40 cents and EPS of 5.70 cents.