morningstar are very conservative in general and i think they tend to be behind the curve in terms of analyst upgrades/ downgrades.
they have almost zero buy / accumulate recommendations and rate most of the market a sell.
they are right the market is overpriced, but morningstar have considered most small and mid cap stellar performers as overpriced for the last couple of years so i read their recommendations and always take their views i to consideration, but i usually disagree with them to be honest more times than i agree.
anyone who runs fundamental analysis over nxt can see its expensive on traditional metrics such as p/e, ev/ebidta, ev/ revenue, dcf etc.
but the 3 factors not incorporated into the quantitative analysis are the highly visible growth runway in terms of revenue growth, the fact that gross and net margins will increase over time, the market leading position with a moat, the fantastic management/ board and the broader industry tailwinds.
nxt is expensive on paper but its still going to go up in value with a roe of >20% pa over next few years so its an easy hold for me and i would be buying any retracement to $5 or less if i wasnt holding.
NXT Price at posting:
$5.27 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)