We reiterate our Buy rating on Kape, noting the 10% share price decline year to date. In our view, the market continues to underappreciate a strong combination of accelerating organic growth into FY19E (+32% vs. 5% FY18A), a large cash position exiting FY18A (US$40m – or 27% of market cap) in the context of a volatile market/geopolitical uncertainties and future M&A optionality.
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Strategic position and cash underappreciated
- Published:
17 Jun 2019 -
Author:
Kartik Swaminathan -
Pages:
7
We reiterate our Buy rating on Kape, noting the 10% share price decline year to date. In our view, the market continues to underappreciate a strong combination of accelerating organic growth into FY19E (+32% vs. 5% FY18A), a large cash position exiting FY18A (US$40m – or 27% of market cap) in the context of a volatile market/geopolitical uncertainties and future M&A optionality.