The share price of sports analytics business Catapult International Group Ltd (ASX: CAT) has climbed 15% higher today to $1.88 after the company announced a new commercial agreement to provide GPS athlete tracking data to all 18 Australian Football League (AFL) clubs.
The data will be supplied via a partnership with sports analytics business Champion Data and Catapult will receive an annual subscription payment plus a share of new revenue generated from any commercial applications of wearable data.
Catapult is not just supplying its local AFL teams though, with some of the world's biggest sports teams in North America and Europe on an impressive client list that suggests its sports analytics products are starting to gain traction.
Recently the business stated it expects to sell 8,000 units this financial year with a total contract value up to $24.5 million. Investors clearly like the potential of this stock as well, ascribing a valuation of around $78 million (or $218 million when including the stock escrowed under the prospectus) with the share price now tripling over the last year. Given the progress being made and fact it is not on an outrageous tech stock type valuation it's possible to suggest this business remains a speculative buy.
