This report is an updated version of the report published on 18 June 2025 at 3:55 PM AEST.

Experience Co Limited (ASX: EXP), an Australian adventure tourism firm, offers a variety of exciting activities such as tandem skydiving, indigenous cultural excursions, and vacations to the Great Barrier Reef, with several sites throughout Australia and New Zealand.

Recommendation Rationale – SELL at AUD 0.120 

• Higher Expenses: EXP’s cost of sales increased to AUD 40.11mn in 1HFY25 vs AUD 38.84mn in 1HFY24. Other income decreased to AUD 1.38mn in 1HFY25 vs AUD 1.42mn in 1HFY24, due to lower income from training and education grants, environmental projects and other marine subsidies, sales of internally generated assets, and other.
• Trading Near the Resistance: EXP’s share price has crossed its R2 level recommended on 5 May 2025. Therefore, the stock may face some consolidation at the current levels.
• Overvalued Multiples: On a trailing 12-month basis – key trading multiple (Price/Earnings) is higher than the median of Consumer Cyclicals sector.
• Market Risk: EXP operates in a highly competitive market, which can affect its market share and profitability. Additionally, rapid advancements in technology require continuous innovation and adaptation.

EXP’s Daily Price Chart

 Valuation Methodology: Price/Earnings Approach (FY June'26E) (Illustrative)

The stock is expected to trade at premium based on YoY revenue growth in 1HFY25, turnaround in profit after tax in 1HFY25, continued investment in growth, and YoY improvement in skydive performance in Q3FY25. For conducting the valuation, the following peers have been considered: Collins Foods Ltd (ASX: CKF), Ainsworth Game Technology Ltd (ASX: AGI), Jumbo Interactive Ltd (ASX: JIN), and other have been considered.

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 0.120, as of 18 June 2025 at 2:51 PM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 18 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.