Got a call from my broker to look into entering a position today given valuations. A few summarized notes below from last week when it was trading at ~$1.70 and 11x EV/EBITDA. Today's share price close was $1.39 so we're seeing an EV/EBITDA multiple of 9x now compared with 30x ASX 300 IT sector multiple. Plenty of upside value growth, especially with the AI capabilities and growth from Neo in the applications of Deep Learning and Artificial Neural Networks given the vast amounts of data Nuix works with. They're actually creating $$$ value from AI rather than just over-hyping it like other companies out there.
Wouldn't be surprised to see this trading back above $2 in the near term. Last two days of nothing newsworthy action was off the back of total market weakness. Temporary noise to buy the dip. I'm scaling into a position when the market opens today and the rest of week. Risk reward of NXL is a fantastic buy opportunity.
NXL Price at posting:
$1.39 Sentiment: Buy Disclosure: Not Held
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