BUZZ-Morningstar calls Australia's Catapult Sports 'undervalued'; shares climb

Reuters
Feb 05
BUZZ-Morningstar calls Australia's Catapult Sports 'undervalued'; shares climb

** Shares of Catapult Sports CAT.AX rise as much as 6% to A$3.475, their biggest intraday pct gain since Jan 23

** Morningstar initiates coverage on sports analytics co with A$4.70 fair value estimate

** The investment research firm says CAT shares are undervalued because market is overly concerned about dilution and integration risk following acquisition of scouting platform Impect, while 'underappreciating' upside from video upsell and improved analytics

** Also notes although co is unprofitable, it has been cash flow positive for past two years; forecasts profitability in FY28

** "We forecast an organic revenue compounded annual growth rate of 15% over the next decade" - Morningstar

** All 9 analysts who cover co recommend 'buy' or higher with median price target A$6.70, as per LSEG-compiled data

** CAT shares lost 15.7% in January

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))

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