Soaring 140% in 17 Months: The Hidden Gem ASX Tech Stock on a Remarkable Streak

October 06, 2023 07:15 AM AEDT | By Team Kalkine Media

Google News:

Soaring 140% in 17 Months: The Hidden Gem ASX Tech Stock on a Remarkable Streak — Image source: shutterstock

Recent News

Otago University Migrates from Blackboard to D2L Brightspace

Silicon Motion Announces the Addition of Jeffrey Ju as Senior Vice Pre...

Elliott Statement on Sumitomo Realty & Development Co., Ltd.

Australian digital health leaders come together to enable solutions fo...

As 2021 came to a close, the specter of inflation cast a shadow, prompting a market shift away from high-growth equities amid fears of rising interest rates. Throughout 2022, these fears materialized with rising rates, dampening the once-bullish sentiment surrounding the technology sector, which had enjoyed a decade of robust growth. While 2023 has witnessed a partial recovery, it has been largely steered by dominant tech behemoths.

September, however, dealt a blow to the ASX technology stocks sector, with the S&P/ASX All Technology Index (ASX:XTX) experiencing a painful 5.1% decline. As inflation cools and potential interest rate hikes loom less prominently, investors are on the lookout for tech gems with promising prospects.

One such hidden gem catching the attention of investors is Audinate Group Ltd (ASX:AD8), a developer of audio-visual networking technology. Despite being affected by the inflation-induced sell-off in 2022, wherein its value halved from December 2021 to May 2022, this Australian tech company has defied the odds. Audinate's share price has surged by an impressive 141% since May last year, marking an 86% increase over the past 12 months and a substantial 71% rise year-to-date.

James Gerrish, a portfolio manager at Shaw and Partners, remains bullish on ASX AD8. Despite recent market volatility, a capital raise, and an ongoing share purchase plan (SPP), Audinate's shares have exhibited surprising strength, prompting Gerrish to affirm his team's bullish stance. Notably, Gerrish expressed the intention to increase their holding in Audinate through the SPP, emphasizing their commitment to maintaining a strong position in the company.

While the Audinate share price experienced a 10% dip on September 8 due to concerns about dilution from the capital raising, Gerrish views this as a potential opportunity for long-term investors to capitalize on a temporary downturn.

Although coverage on Audinate is limited, Gerrish's optimism aligns with the broader sentiment among his peers. CMC Markets currently reports that five out of six analysts recommend Audinate as a strong buy, underscoring the positive outlook for this hidden gem in the ASX technology landscape.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.