Are you wanting some exposure to the tech sector? If you are, now could be the time to load up on Catapult Sports Ltd (ASX: CAT) shares.
That's the view of analysts at Bell Potter, which have named the sports technology company as an ASX tech stock to buy.
What is the broker saying about this ASX 200 tech stock?
Last month was a busy one for the company with the announcement of a trading update, major acquisition, and capital raising. Commenting on this, the broker said:
Our forecasts now include the acquisition which will contribute for five months in FY26. Our 1HFY26 forecasts are also consistent with the trading update and we forecast ACV of US$115.5m (vs guidance of US$115.3-115.6m), revenue of US$67.5m (vs US$67.2- 67.5m), Management EBITDA of US$9.5m (vs US$9.0-9.5m) and Free Cash Flow of US$4.0m (vs US$3.7-4.0m). That is, we expect a 1HFY26 result consistent with trading update and also expect the company to reiterate the underlying FY26 guidance of strong ACV growth, improvement in margins and higher free cash flow.
Bell Potter currently values this ASX tech stock on a 9x EV/revenue multiple, with FY 2027 as the base year. It notes that this is a premium to Qoria Ltd (ASX: QOR) but a significant discount to Life360 Inc. (ASX: 360). It adds:
We note the 9x multiple we apply in the EV/Revenue is a sizeable discount to the c.13x that Life360 currently trades on (based on our 2026 forecast) and a premium to the c.6x that Qoria trades on (based on our FY27 forecast). We believe Catapult deserves to trade on a multiple between the two.
Time to buy
In response to recent weakness in its share price, Bell Potter has upgraded this ASX 200 tech stock to a buy rating with a $7.50 price target.
Based on its current share price of $6.38, this implies potential upside of 17.5% for investors over the next 12 months.
Commenting on its upgrade, the broker said:
Our $7.50 PT is now >15% premium to the share price so we upgrade our recommendation from HOLD to BUY. The upgrade is driven by valuation and, while we do not expect any positive surprises at the upcoming 1HFY26 result later this month, equally we do not expect any negative surprises given narrow guidance ranges for key figures/metrics have already been provided.
We do, however, expect positive outlook commentary at the H1 result, particularly around the strategic value of IMPECT and the opportunity for both cross-sell and expansion of the product into other sports. We also expect positive outlook commentary for the core business and, for instance, the potential of a new or additional sideline video contract in 2HFY26 or FY27.
