ASX:BVS
Bravura Solutions Ltd
Investment Summary
The fund managers believe that Bravura Solutions Ltd (BVS) is showing significant growth potential following recent positive developments. In November 2024, BVS raised its revenue and cash EBITDA guidance, resulting in a 46% surge in share price. The fund managers note that BVS has exceeded earnings expectations by over 10% in its last four results, which they interpret as a consistent track record of under promising and over delivering. February 2025 reports indicated a 17.6% increase in share price alongside reinstated dividends, evidencing confidence in the company's financial stability. Management's focus on securing new contracts suggests a potential for upgraded revenue growth projections from low-mid single digits to mid-high single digits in the coming years. Overall, the fund managers view BVS as well-positioned to capitalize on market opportunities, particularly in the superannuation administration sector.
Commentary From The Managers
Endeavor Asset Management
28 Feb 2025
$2.54
- Bravura Solutions (BVS) experienced a significant increase of 17.6% in February following a strong 1H25 result and upgraded FY25 guidance.
- BVS has consistently exceeded earnings expectations by more than 10% in its past four results, indicating a strong track record of under promising and over delivering.
- The focus on securing new contracts is expected to drive revenue growth consensus projections from low-mid single digits to mid-high single digits over the next 2-3 years.
- The reinstatement of a dividend is a positive sign, with expectations for continued dividends in the future, including a special dividend in April.
- Endeavor Asset Management continues to hold BVS shares in light of these positive developments.
Endeavor Asset Management
31 Dec 2024
$2.25
- Endeavor Asset Management invested in Bravura Solutions (BVS) at the end of November.
- BVS provides software solutions for the wealth management, life insurance, and funds administration industries.
- In early December, BVS released updated guidance, leading to significant upgrades.
- The midpoint of revenue guidance was raised by 2% to $242.5 million.
- The midpoint of cash EBITDA guidance was raised by 15% to $34.5 million.
- As a result, BVS's share price increased by 46% over the month.
- Endeavor Asset Management continues to hold because of these positive developments.
Spheria Asset Management
30 Nov 2024
$1.57
- Spheria Asset Management notes a 46% increase in Bravura Solutions' share price during the month.
- The company has raised FY25 earnings expectations and recommenced dividends, highlighting positive momentum.
- Management anticipates modest revenue growth in FY25, marking a return to topline growth after cost alignments.
- New management has effectively executed a turnaround strategy, boosting operational confidence.
- The recommencement of dividends reflects management's confidence in stable earnings.
- Bravura has emerged as a top performer in the small-cap fund, increasing over 160% in the past year.
- The company is strategically positioned to gain market share in superannuation administration due to the strength of its Sonata platform.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.