$Catapult Group International Ltd (CAT.AU)$ shares rose 8.37% on Thursday, with trading volume expanding to A$25.74 million. Catapult has rose 7.05% over the past week, with a cumulative gain of 108.70% year-to-date.
Catapult's technical analysis chart:
Technical Analysis:
Support: A$2.35
Resistance: A$2.86Price range A$2.35 to A$2.86: The trading range indicates a heavy concentration of buy orders, with the stock price on an upward trend. The stock repeatedly touched the level near A$2.35, where it found significant support and subsequently rebounded. There is a strong presence of buy orders around A$2.35, suggesting a robust foundation for the price. There is considerable upward pressure near the resistance level of A$2.86, with a lot of profit-taking positions, which suggests strong selling pressure. Going forward, it will be crucial to monitor whether the stock can effectively break through the resistance level at A$2.86.
Market News :
Catapult announced its financial results for the first half of the fiscal year 2025 ended September 30, 2024.
The Annualized Contract Value (ACV), which is Catapult's key indicator of future revenue, saw a 20% increase YoY on a constant currency basis, reaching $96.8 million US dollars (or A$143 million). Revenues grew to $57.8 million US dollars (or A$85 million), marking a 19% increase YoY on a constant currency basis. The profit margin from additional revenue generated was 75% YoY, resulting in a Free Cash Flow (FCF) of $4.8 million US dollars (or A$7 million). ACV retention remained robust at 96.2%. The Customer Lifetime Duration increased by 7% YoY to 7.6 years. The number of Pro Team Customers grew by 7.9% YoY, reaching 3,470 teams.
Commenting on the outlook for the Company, Mr Lopes said:
Our objective remains to deliver on our strategic priorities, emphasizing profitable growth. For the entirety of FY25, we continue to expect ACV growth to remain strong with low churn, continued improvement in cost margins towards long-term targets, and higher free cash flow.
Overall Analysis:
Fundamentally, focus on the company's performance and operational status. Technically, it is necessary to monitor whether the stock price continues to stay within the upward channel, whether the support at the bottom of the channel remains valid, and whether the resistance level can be effectively broken through.
In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.
