Commentary

Key developments

Enterprise ICT stocks in Australia and New Zealand showed mixed performance over the last year. Overall, economic growth is expected to be sluggish relative to previous years, creating uncertain performance for enterprise ICT equities. Some of these companies are growing through acquisition rather than organically, and are exposed to any economic downturn.

Comms Group

Comms Group’s stock had a positive month rising over 8% after the business published a strong trading update with revenue of $41.4 for the 9 months to March 31, up 7% on pcp, and EBITDA of $5.1 for the same period, up 46% pcp. Comms Group’s CEO Peter McGrath said “Our global business has added significantly across the Asia Pacific region allowing us to service more Tier 1 carriers, MNCs, large OTT providers and CPaaS and CCaaS customers”.

Data#3

Data#3’s stock price is up around 4% in the last month, despite a lack of price sensitive announcements by the company. The stock has rebounded slightly after bottoming out at $7.35 after three months of turbulence since the market reacted poorly to its 1H24 results.

Vonex

Vonex’s stock is up nearly 39% in the last month, despite a lack of price sensitive announcements. A result like this is characteristic of micro-caps, which are sensitive to market sentiment (Vonex’s market capitalisation is ~$6m). Over the course of the last year the stock was down 40%.

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