Shaw and Partners on Nuix $NXL: "NXL has reiterated its key FY25...

Shaw and Partners on Nuix $NXL: "NXL has reiterated its key FY25 targets at its AGM yet the stock is down 20%. We view this as an over-reaction. Reiterate Buy.HIGHLIGHTS· FY25 outlook reiterated: NXL has reiterated its kye targets including: 1) ~15% ACV growth in C/C; 2) continued successful roll-out of Neo; 3) revenue growth exceeding operating cost growth (ex legal costs); and 4) underlying CF positive for the full year.· Our take: Potentially the market is reacting to the comment that “sales are not linear over the course of the year, and our current expectations are that growth will be weighted towards the second half of the fiscal year”. NXL’s operations don’t follow a typical 1H/2H seasonal skew but the timing of incremental ACV is dependent on the timing of renewals and closing new business. We expect this statement highlights that a greater proportion of renewals are scheduled for the 2H and the timing of new business closing might be also. In our view, this does not highlight a change in demand or a change in execution success. As such, we view the commentary as being on-track and in-line with prior communications.RECOMMENDATIONWe reiterate our Buy rating and PT of $7.20."