Q: I’m in the process of clearing out my portfolio and have 1,000 shares of Kraken Robotics that I’ve held for a few years. These shares have appreciated by 200%. What do you think about the future prospects of this small-cap company? While the total value isn’t huge, it’s been nice to see the growth. Should I continue holding onto these shares? I’d appreciate your thoughts. Thanks in advance.
5i Research Answer:
We like the outlook for PNG and it has displayed the ability to win some big name contracts. The company is also profitable with decent margins and small cash flows. More contract wins over the next few months will be a big positive. Anlayst estimates forecast revenue growth of 37% and 22% for 2024 and 2025. We would be comfortable holding into the next earnings.