ASX All Ords technology stock Praemium Ltd (ASX: PPS) is having a great run in 2024.
Shares in the software company are up 33% in the year to date, compared to a 7.7% bump in the S&P/ASX All Ordinaries Index (ASX: XAO).
At Friday's close, the Praemium share price was trading flat at 52 cents per share.
Praemium provides administration software, investment platforms, and financial planning tools predominantly to the Australian wealth management industry.
Nick Sladen, the co-portfolio manager of LSN Capital Emerging Companies Fund, reckons Praemium has the most near-term upside in the fund.
In the Australian Financial Review (AFR), Sladen said the ASX All Ords company was seeing strong growth across its business.
He describes it as a smaller version of Netwealth Group Ltd (ASX: NWL) and Hub24 Ltd (ASX: HUB).
He says the company is exposed to similar growth tailwinds but is far cheaper than these two competing ASX All Ords stocks.
Sladen commented:
The latest earnings result showed some very promising signs with a return of operating leverage, and the outlook for FY25 is improving thanks to product price increases.
Praemium has a strong balance sheet, it's paying a dividend and is undertaking a share buyback.
Although the ASX All Ords tech stock is up an impressive 33% so far in 2024, it is still down 14.7% over the past 12 months.
Sladen explained that Praemium was "left behind" and had "dropped off the radar" for investors because it was not in the S&P/ASX Small Ordinaries Index (ASX: XSO).
However, Sladen expects the stock to be repriced as investors catch on.
What's the latest news from Praemium?
Last month, the Praemium share price shot 23.81% higher after the company released its FY24 results.
The ASX All Ords company reported a 12% increase in revenue and other income to $84.9 million.
It also revealed an 8% fall in underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $21.5 million. Statutory net profit was $8.8 million, down 42%.
The company also revealed a 30% increase in funds under administration (FUA) to $57.4 billion.
Praemium CEO and executive director Anthony Wamsteker said:
Praemium enters 2025 with optimism and positive momentum. The SMA platform's premium offer is
priced at competitive levels consistent with the market we serve.We will look to that experience as a model for ensuring the same rigorous review is applied to our VMA and VMAAS offers in 2025. Our investments in capability and resilience have set us up for long-term success.
Praemium declared a fully franked dividend of 1 cent per share, which was paid on Thursday.
