The Bravura Solutions Ltd (ASX: BVS) share price has been a standout performer on the S&P/ASX 200 Index (ASX: XJO) on Tuesday.
The shares of the leading provider of software products and services to the wealth management and funds administration industries are up 8% to $4.94 in afternoon trade. This compares a solid 1.4% gain by the ASX 200.
Why is the Bravura Solutions share price rocketing higher?
Investors have been fighting to get hold of the company's shares on Tuesday after the release of a presentation ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) Investor Conference.
As well as providing investors with a breakdown on its business and its sizeable market opportunities, the presentation included an update on its guidance for FY 2020.
As you might have guessed from the share price reaction, Bravura Solutions' guidance for the full year remains positive despite the coronavirus pandemic.
According to the release, its full year net profit after tax growth is expected to be in the mid-teens in FY 2020. Importantly, this guidance excludes the impact of acquisitions it has made during the financial year. Those acquisitions are expected to add a further $3 million to its bottom line this year.
Should you invest?
While it certainly isn't the bargain buy that it was in middle of March, I still think Bravura Solutions would be a great long term investment option for investors.
This is due to the quality of its Sonata Wealth Management solution and recent acquisitions.
The Sonata platform allows users to connect and engage with their clients anytime, anywhere, through computers, tablets or smartphones. It is proving to be very popular with financial institutions due to the way it simplifies legacy client systems into one unified customer-centric solution.
And then there's the recent acquisitions of Midwinter and Finocomp.
Midwinter allows financial advisers to provide comprehensive face to face financial advice. Management believes it is well placed to capitalise on the continued change in the Australian financial advice industry. It also notes that it has received interest from New Zealand financial institutions and has significant potential in Bravura's other operating geographies.
Whereas FinoComp's software adds functionality to Bravura. It also brings new Wealth Management clients as well as cross-sell opportunities to Bravura's existing clients and combined offerings across the Bravura product suite.
Combined, I believe Bravura is well-positioned to continue this above-average growth for a number of years to come. Which is why I would class its shares as a buy today.
