Weekly| TNE Topped Estimates! WTC & NXT Received Bullish Ratings

As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,154.80 points, down -1.71% in the past 5 days.

During the last 5 trading days,  $Polynovo(PNV.AU)$ was up 10.32%; $Technology One(TNE.AU)$ added 9.90%; $Altium(ALU.AU)$ rose 7.91%; $Nextdc(NXT.AU)$ was up 6.77%; $Wisetech Global(WTC.AU)$ increased 5.20%.

1. $Polynovo(PNV.AU)$ rebounded 10.32% after the continuous decline

PolyNovo is an Australian company that designs, develops, and manufactures dermal regeneration solutions (NovoSorb BTM) using its patented NovoSorb biodegradable polymer technology.

There is no price-sensitive news available currently. However, it should be noted that the stock has been falling since February. Last week, it hit another low point. Thus, this week’s rally might be a rebound after the continuous decline.

According to consensus estimates from six Australian Medical Equipment analysts, PolyNovo is expected to reach breakeven soon. The analysts anticipate a final loss in 2024, followed by positive profits of AU$15 million in 2025. This suggests that the company may reach breakeven approximately two years from now.  

2. $Technology One(TNE.AU)$ up 9.90% as earnings exceed estimates

Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions worldwide.

TechnologyOne has released its half-year results this week, exceeding expectations in both revenue and profit.

Revenue: The company's revenue increased by 22% to $210.3 million, driven by its software-as-a-service (SaaS) business, which saw a 40% growth in annual recurring revenue (ARR) to $316.3 million.

Profit before tax and profit after tax both grew by 24% to $52.7 million and $41.28 million, respectively.

Dividend: The company also announced a 10% increase in interim dividend to 4.62 cents per share.

Outlook: Looking ahead, TechnologyOne is confident in its ability to sustain strong growth throughout the year and expects a net profit before tax growth of 10% to 15%.

3. $Altium(ALU.AU)$ +7.91% on successful completion of SOC 2 Type 2 Certification

Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally.

$Altium(ALU.AU)$ has announced that it has achieved the Service Organization Control (SOC) 2 Type 2 certification. This certification highlights Altium's commitment to maintaining high standards of data security and integrity within its cloud-based Altium 365 platform.

The SOC 2 Type 2 certification demonstrates Altium's dedication to ensuring data availability, security, and privacy on the Altium 365 collaborative platform for electronics design.

This achievement reassures investors and stakeholders that Altium has robust security measures in place, which can enhance confidence in the company's products and services.

4. $Nextdc(NXT.AU)$ added 6.77%: bullish ratings from Goldman Sachs

NextDC, a data centre operator listed on the ASX, is receiving bullish ratings from Goldman Sachs due to the strong demand for data centre services driven by the cloud computing boom. The broker believes that NextDC will continue to experience solid growth in the future.

Goldman Sachs highlighted the rapid growth in cloud adoption, supported by the evolution of the enterprise telecommunications market, as a key driver for NextDC's growth. The significant demand from both public and private investors for digital infrastructure assets further contributes to NextDC's positive outlook.

The broker views NextDC as having a compelling growth profile and a proven and profitable business model. It also notes that NextDC's stock trades at a growth-adjusted discount compared to its peers, which Goldman Sachs considers unjustified.

As a result, Goldman Sachs has assigned a buy rating to NextDC's shares and set a price target of $14.96.

5. $Wisetech Global(WTC.AU)$ continued it uptrend: bullish ratings from UBS & Ord Minnett

WiseTech Global, a logistics solutions company listed on the ASX, is considered a potential buy due to its popular CargoWise One platform, which has become essential to the global logistics industry and is generating strong recurring revenue. The platform's high stickiness and low churn levels are expected to contribute to WiseTech Global's continued growth in the future.

Ord Minnett, a financial services firm, currently holds an accumulate rating on WiseTech Global's shares and has set a price target of A$90.00.

UBS analyst Lucy Huang increased her target price for WiseTech stock to A$85.90. UBS maintains its buy rating on the stock.