Q: Kraken Robotics stock has been on a downward trajectory, since early March, this year, losing about 30% value, from the high of $10.72. Even recent results failed to reinvigorate the stock and it continues to drift lower.
We know that this Co is one of your favourites and is considered to be a long term term story with stock making your list of potential compounders.
What is ailing the stock price in near term and what would be the catalysts to bring its traction back ?
Thanks
We know that this Co is one of your favourites and is considered to be a long term term story with stock making your list of potential compounders.
What is ailing the stock price in near term and what would be the catalysts to bring its traction back ?
Thanks
5i Research Answer:
We continue to like PNG here, and the recent pullback appears fairly normal within its uptrend since 2023. There has been some general rotation out of the defense spending theme and into AI hardware names recently, which we think is causing this 'mini-rotation'. It trades at a premium valuation of 75X forward earnings, and we think that it may need some time to consolidate before a potential next move higher. A major catalyst could be increased geopolitical uncertainty, but largely we think that time to consolidate is the biggest factor here.