The team at Shaw and Partners have used the recent reporting season as an opportunity to have another look at some of the companies they cover, with two in particular standing out as presenting some possible large upside.
Let's have a look at the companies they like.
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Beamtree Holdings Ltd (ASX: BMT)
Beamtree is a healthcare technology company which, in its own words, "applies deep clinical, coding and data expertise combined with AI to help hospitals and pathology labs improve clinical quality, coding accuracy, and reimbursement outcomes''.
The company said in a recent shareholder update that it had undertaken a strategic review which led to it refining its product mix, reshaping its cost base and strengthening its executive team.
The company added:
Going forward, we are focusing our investment on the products with strongest customer resonance, margin potential and capacity for innovation, namely our market leading Diagnostics product (Rippledown), our Coding solutions (PICQ and PICQ Audit, RISQ) and our Analytics platform. This year we are launching our Autonomous Coding Solutions (ACS) product and our Autonomous Data Entry (ADE) product with selected customers.
Shaw and Partners in its research note on the company said the company's full year result of $29.2 million in revenue and negative EBITDA of $3.5 million was broadly as expected.
The broker said the business had a solid foundation to grow from, with execution now the key.
They have reduced their price target on the company from 30 cents to 25 cents, however this is still well above the current level of 10 cents.
NobleOak Life Ltd (ASX: NOL)
This small cap life insurance provider delivered a net profit of $14.1 million in FY26, up 98% while its in-force premiums grew 18% to $549.2 million.
The company's Chief Executive Officer Anthony Brown said it was a good year, with the company achieving strong market share gains.
He added:
We are executing our growth strategy and during the year launched new partnerships and products including a new alliance with nib, one of Australia's largest private health insurers, which is delivering encouraging early results and is expected to accelerate in FY27. Disciplined underwriting, ongoing investment in technology and AI, and a relentless focus on our customer continue to underpin our performance. As we transition from a Friendly Society to a Life Company, we are well positioned and well capitalised to deliver our next growth phase.
Shaw and Partners said NobleOak beat its guidance for both in-force premiums and underlying net profit.
The broker has a price target of $3 on the shares, compared to $1.23 currently.
