With most brokers taking a break over the holiday period, there haven't been many notes hitting the wires.
But don't worry because summarised below are three recent recommendations that remain very relevant today. Here's what brokers are recommending to clients:
Catapult Sports Ltd (ASX: CAT)
According to a note out of Bell Potter, its analysts retained their buy rating on this sports technology company's shares with a trimmed price target of $6.50. This followed the release of a strong result, which revealed that Catapult delivered earnings ahead of both guidance and Bell Potter's estimates. The broker highlights that this was driven by a higher margin than forecast. Looking ahead, Bell Potter sees strong double-digit growth in the core business and believes this will be boosted by the cross-sell opportunity from the recent IMPECT acquisition, as well as potential expansion into other sports. And while Bell Potter trimmed its valuation, it points out that this reflects a change in multiples due to the recent de-rating of the tech sector. The Catapult share price ended the week at $4.14.
Generation Development Group Ltd (ASX: GDG)
A note out of Macquarie revealed that its analysts initiated coverage on this diversified financial services company's shares with an outperform rating and $6.70 price target. The broker highlights that Generation Development Group's businesses are market leaders in growth sectors and well positioned to scale. This includes the key Evidentia managed accounts business, which it believes is poised to capture an outsized share of industry growth over 2024 to 2030. Another positive that Macquarie highlights is that management incentives support alignment with investors. This includes the top end of long term incentives requiring an earnings per share growth hurdle of +27.5%. The Generation Development Group share price was fetching $6.00 at the end of the week.
TechnologyOne Ltd (ASX: TNE)
Analysts at Morgan Stanley upgraded this enterprise software provider's shares to an overweight rating with an improved price target of $36.50. This followed the release of TechnologyOne's full year results for FY 2025. Although the broker acknowledges that there has been a slight slowdown in its growth outside the UK, it remains highly profitable and is generating significant cash flow. In light of this and its positive growth outlook and defensive earnings, Morgan Stanley thinks that recent share price weakness has created a buying opportunity for investors. The TechnologyOne share price was trading at $27.50 at Friday's close.
