The downgrade is really disappointing for a couple of reasons:
1. How late in the game it occurred. Not sure how this downgrade fits in with continuous disclosure rules. Considering they say 81% of revenue is recurring and in November at the AGM there was no FY22 NPAT revision makes me wonder. It would have been quite clear well before the AGM that the guidance was going to be way off. 2. The magnitude of it. By my estimate it is a 20%-30% NPAT downgrade from three months ago. This is not the kind of broader market environment where you want to be announcing huge downgrades.
I have been tracking the price down over the past month or so as i thought the valuation of BVS was cheap compared to PPS, NWL, HUB. Haven't yet bought and am still interested but i think there is a bit more downside to come.
A question now would be at what point would it be a takeover target and at what price?
BVS Price at posting:
$1.89 Sentiment: None Disclosure: Not Held
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