Company Interview / 60% Off: The US tech stock this Aussie value investor is hunting

Key points :

Hay targets quality SaaS and tech names sold off ~60% with resilient fundamentals Intuit $INTU preferred over Xero (ASX:XRO) due to diversification, balance sheet and valuation UK names Rightmove $RMV and Auto Trader $AUTO compared favourably to REA (ASX:REA) and Carsales (ASX:CAR) on valuation

Rob Hay from Collins St Asset Management argues that the sharp global sell-off in software and SaaS names is starting to create value opportunities for patient value investors. Hay states that a flexible mandate allows capital to sit on the sidelines during euphoric phases, then be deployed when quality names fall 60% or more without any meaningful deterioration in fundamentals. ,Hay highlights US-listed Intuit ($INTU) as a key example. He describes Intuit as a dominant player in small to medium-sized business accounting software, with a strong QuickBooks franchise, deep data advantages and long-standing relationships with bookkeepers and accountants. Hay contrasts Intuit with Xero (ASX:XRO), noting what he views as Intuit’s more diversified model, entrenched position in the US, negligible debt, ongoing buybacks and pricing power, while trading on what he calls a markedly lower forward PE multiple than Xero.

Beyond the US, Hay points to similar themes in the UK, where he is watching Rightmove ($RMV) versus REA Group (ASX:REA), and Auto Trader Group ($AUTO) versus Carsales (ASX:CAR). He contends that global peers often trade on roughly half the multiples of Australian equivalents, and suggests local investors remain too home-biased despite easier access to international markets. ,Key points - Hay targets quality SaaS and tech names sold off ~60% with resilient fundamentals - Intuit $INTU preferred over Xero (ASX:XRO) due to diversification, balance sheet and valuation - UK names Rightmove $RMV and Auto Trader $AUTO compared favourably to REA (ASX:REA) and Carsales (ASX:CAR) on valuation