In August of last year the shares of sports analytics company Catapult Group International Ltd (ASX: CAT) hit an all-time high of $4.29. But fast forward to today and its shares are a whopping 41% lower at just $2.51.
Although profit taking is likely to have played a role in a good part of this decline, the majority of it appears to stem from the market's disappointment regarding its FY 2017 forecast.
Its shares have fallen by around 27% since December 1 when management forecast annual revenue growth of between 21% and 30% this year.
This was a touch disappointing because in the first quarter of FY 2017 Catapult reported a 45% increase in revenue year on year, excluding the recently acquired PLAYERTEK business.
Many in the market, myself included, had expected this level of growth to be sustained throughout the year, especially with the addition of its two new businesses. Unfortunately management doesn't expect that to be the case.
As disappointing as this may have been I feel it's important to acknowledge that this is still a strong level of growth that a lot of ASX-listed companies could only dream of.
So with its share price down sharply, I believe this puts Catapult in the buy zone for investors that are willing to make a patient long-term investment.
As well as its strong core business providing significant growth opportunities, the two newly acquired businesses offer the company lucrative cross-selling opportunities and a foot in the door of the prosumer market.
This could help maintain its strong top line growth for a number of years to come, making it an ideal buy and hold investment.
Although its shares aren't cheap even after their decline, I would still put them up there with the likes of Altium Limited (ASX: ALU) and Aconex Ltd (ASX: ACX) as tech shares to buy right now.
