Data#3 (ASX: DTL) Stands Strong Amid General Tech Weakness

Industry News

& Articles

Data#3 Stands Strong Amid General Tech Weakness

  • Shares in Data#3 have found support amid a poor month for Australian tech.
  • Shares in the company surged over 5 per cent on Friday the 21st of May.
  • Data#3’s work from home service remain essential post-COVID-19.

Data#3 (ASX: DTL) remains at the forefront of providing companies with information and communications technology, despite broader weakness in Australian tech. Work from home solutions remain essential and the continual provision of flexible work arrangements to some extents have been integrated into a post-COVID-19 world. Data#3 (ASX: DTL) provides a wide range of information technology services which include security, cloud, mobility, and data analytics services.

Earlier this year, Data#3 released its half-year results to the market, recording total revenues rising 19.2 per cent to $856.7 million, $246.1 million of which was from public cloud revenues. This resulted in net profit after tax of 7.9 per cent to $9.4 million leading to a like 7.9 per cent increase in earnings per share. Fundamentally the company remains exceedingly resilient as 62 per cent of the collected revenues are labelled as recurring, “derived from government and large corporate customers fulfilling their essential IT requirements.”

Morgan’s have placed a $5.75 price target on Data#3, above where it is currently trading after meeting the institutions expectations for Data#3’s revenues and net profits after tax (NPAT). Morgans believes the Australian Technology sector has significant room for growth in 2021 and that this will act as a tailwind for the Australian tech company. Finally, they also upgraded their earnings per share forecasts to 6% for FY21 and 10% for FY22.

Shares in the company’s today opened at $5.52 per share, quickly rebounding after a 16 per cent sell-off in recent weeks. Data#3 has used the 61.8 per cent retracement as a perfect level of support with two candlestick wicks and has pushed higher off a bullish green candlestick. This move has pushed the Stochastic Oscillator positive with a converging MACD following suit.

Moving forward, though Data#3 might be generally connected with broader movements in Australian and US tech, it’s long-term contracts, and recurring revenues will provide it security in the current environment. Further, demand in cloud-based services remains elevated, with total infrastructure spending in the sector growing 29 per cent in the first quarter of 2021 to $18.6 billion in the United States.

Amazon Web Services, Microsoft Azur and Google cloud rate among the highest spenders with 32, 19 and 7 per cent share of the spending. In particular, Microsoft is a key partner of Data#3, providing software support for Microsoft cloud services such as Microsoft 365 and Microsoft Azure. This support includes ‘migrating workloads, building new apps, amping up your security, gaining insights from data, or creating innovative new experiences.’

Louis Mosmann

Louis Mosmann is a Private Wealth Client and Research Assistant at KOSEC- Kodari Securities. Louis covers macroeconomic events, global markets and ASX300 company announcements, allowing clients to make more informed investment decisions. Email Louis at

Comment on this company

Latest Stories

Telstra Corporation Capitalises on AI for Future Growth

Telstra Corporation (‘Telstra…. …

Whitehaven Coal Reports Net Loss of $543.9 Million

Whitehaven Coal Limited (‘Whitehaven’……

WiseTech Global Announces Impressive FY21 Profit Margin

Prominent WAAX player… …

More for you

Rio Tinto Achieves Record Underlying Earnings and Dividends

Rio Tinto Limited (‘RIO’ or the ‘Company’)……

Research & Development Underpins CSL’s Future Earnings

CSL (or the ‘Company’) is a world-leader…. …

Ingenia Communities Group Reports Exceptional FY21 Results

Ingenia Communities Group (the ‘Group’ or ‘Ingenia’).. …

Strong Earnings Growth Cements REA Group’s Position

REA Group (‘REA‘ or the ‘Group’) is a…. …

MacMahon Secures $210 Million Warrawoona Gold Contract

Australian gold and iron producers… …

Product Innovation Supports James Hardie’s Earnings

James Hardie (‘JHX’ or the ‘Company’) is… …

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.



KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.


Latest TV Commercial