Up­ward surge slow­ing

Finweek English Edition - - SIMON SAYS -

Curro got sold off af­ter a trad­ing up­date promis­ing HEPS will be 33%- 43% higher – a good num­ber, but maybe a lit­tle light for this high-f ly­ing stock. The re­al­ity is that as the com­pany gets big­ger – it now has 42 cam­puses with over 36 000 learn­ers – it be­comes harder to main­tain mas­sive growth. To my mind the 33%-43% in­crease is a good num­ber for Curro’s stage of growth, but this stock still re­mains very ex­pen­sive and the risk that it will dis­ap­point the mar­ket with mod­est growth num­bers is very real and could re­sult in a more sig­nif­i­cant sell-off.

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