Broker tips double-digit returns as ASX 300 software firm announces new boss

The appointment of a new chief executive is a positive for this software firm, a broker says.

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Key points

  • Software company Bravura Solutions has appointed a new Chief Executive Officer.
  • E&P Capital says it's a positive, and there's more upside for the stock.
  • The new CEO will be based in London. 

Financial services software firm Bravura Solutions Ltd (ASX: BVS) has appointed a new boss, with one broker tipping there are double-digit gains to be made on the stock, which was sold off after the company reported its results last month.

Bravura said on Monday that it had appointed experienced software executive Colin Greenhill as its group Chief Executive Officer, starting on January 1 2026.

Mr Greenhill has over 15 years' experience operating as a Chief Executive with wide-ranging experience leading software businesses serving the financial services and insurance sectors. He recently served as Chief Executive Officer at SSP Worldwide, a global supplier of software to the insurance industry, and led an international portfolio of banking, wealth management and insurance software businesses.

E&P Capital analyst Oliver Coulon said in a note to clients that Mr Greenhill appeared to be a well-credentialed executive "with extensive and relevant experience in long sales-cycle financial services software businesses''.

Mr Greenhill will be based in London, which Mr Coulon said was understandable given the company's exposure was larger in that region than locally.

The appointment of a permanent group CEO reduces uncertainty and in our view is a positive development. Given the solid recovery of the share price since the sell off at the FY25 result however we wouldn't expect a material share price reaction to this news.

Shares sold off on results

Bravura shares were sold down from around $2.40 to less than $2 after the company reported its full-year results on August 13. However, they have since recovered and are trading at $2.47.

E&P Capital predicts there is further upside for the stock, however, with a price target of $2.95.

Bravura reported full-year underlying revenue of $256.8 million, up 3.1%, in August and an underlying net profit of $24.4 million, up $15.6 million from the previous year.

The company declared an unfranked final dividend of 2.92 cents per share and a special dividend of 1.79 cents per share.

Bravura said at the time it expected underlying revenue for the current financial year to be in line with FY25 and EBITDA to be more than $50 million.  

The company ended the year with $58.7 million in cash and no debt.

Bravura was included in the S&P/ASX 300 Index (ASX: XKO) on September 22.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bravura Solutions. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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