The S&P/ASX 200 Index (ASX: XJO) is climbing higher today, up 1.27% at the time of writing. For the year, it is 9.27% higher.
It's decent growth for the past 12-month period, but there is one stock that has far outpaced the index and shot up significantly faster.
The Bravura Solutions Ltd (ASX: BVS) share price has risen an impressive 125.26% year on year. The majority of growth (54.6%) has happened in the past month. For today alone, the share price has jumped 10.54% higher and is changing hands at $3.295 a piece.
Why is the ASX 200 share storming higher?
Investors have been buying the shares of the wealth management software solutions provider this week following its latest guidance update.
Bravura said it expects FY26 revenue to be between $265 million and $275 million, which is ahead of last year's $256.8 million result. The business cites the continued strength of the British pound, higher project revenue, and continued focus on operational efficiency for the uplift.
The company also upgraded its EBITDA guidance to between $55 million and $65 million. This is higher than its FY25 result of $50 million.
And now Macquarie Group Ltd (ASX: MQG) has updated its guidance on the ASX 200 share.
Macquarie's outlook for Bravura shares
In a recent note to investors, the broker confirmed its neutral stance on Bravura shares. It also raised its target price to $3.02. Macquarie's latest guidance was for $2.03 in August.
At the time of writing, the new target price represents a potential downside of 8.3% over the next 12 months.
"Valuation: TP raised to $3.02 (from $2.03), reflecting upgrades. We have also removed the discount we applied to the terminal growth assumption, to reflect ongoing performance," Macquarie analysts said.
"Neutral. While we have upgraded earnings and our target price, the share price movement ahead of the update and in reaction to the release captures is in-line with our valuation."
What else did Macquarie have to say?
The broker said that the initial FY26 guidance noted that underlying revenue growth was expected to be driven by existing customers in EMEA and APAC and cross-sell opportunities in tandem with some new business wins. But added that no new customer wins were announced with the trading update.
Macquarie also said that the guidance upgrade comes despite a "drag from customer exits announced in 2022, that have remained clients".
"One of three customer exits disclosed in Nov 2022 was expected to complete migration to a BPO by 1 Jan 2026. This customer generated A$10m revenue in FY25 and was not part of the reported FY25 attrition. This implies ~$5m FY26 revenue headwind. One of the other three customer exits from 2022 remains a client."
Also, exits or reductions in FY25 were expected to have a further 2.5% (or A$6.5m) revenue headwind in FY26.
Macquarie added: "While the upgrade calls out continued GBP strength, since guidance was issued at the result, the GBP has actually slightly weakened vs the AUD."
