ASX:KGN
Kogan.com Ltd
Investment Summary
The fund managers believe that Kogan.com Ltd (KGN) is currently facing challenges that may affect its future performance. In their opinion, the recent quarterly business update missed market expectations, leading to a negative reaction in the share price, which was around $5.08. They noted that the stagnation in the growth of the loyalty program and a slower second-half outlook for the core business contributed to this situation. Consequently, analysts have revised earnings forecasts downward. While the fund managers acknowledge that the lower expectations for FY24 might make it easier for Kogan to meet targets, they feel that their current position weight in the portfolio is appropriate given the prevailing uncertainties.
Commentary From The Managers
Endeavor Asset Management
30 Apr 2024
$5.08
- Kogan.com Ltd missed market expectations in its latest quarterly update.
- The Company’s loyalty program experienced stagnated growth in its customer base.
- Monthly run-rate of the core business indicates a slower second half.
- Due to these factors, the share price was negatively impacted.
- Analysts have revised earnings forecasts downward.
- Despite challenges, a lower bar for FY24 earnings expectations may be easier to meet.
- Endeavor Asset Management continues to hold its current position weight as it is deemed appropriate for the portfolio.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.