GVC Gaesco raises Izertis' target price to 10.70 euros per share
The independent financial group GVC Gaesco, has released on Tuesday a new report on Izertis, in which it has updated its estimates and has raised the target price of the multinational technology company from €9.70/share to €10.70/share, reiterating its 'Buy' recommendation. This new target price means a potential revaluation of the share of 35% compared to Monday's market closing price.
Regarding the objectives of Izertis' 2020-2023 Strategic Plan, the GVC Gaesco report notes that "one year after our coverage began, it can be said that the company is executing the plan to perfection, the integration of companies continues at a high pace and the group's organic growth is exceeding 10%". GVC Gaesco analysts estimate that in 2023 Izertis "will reach net sales of €125m and a normalised EBITDA margin of 12.5%, far exceeding the 10% forecast in the Strategic Plan".
The report released a few hours ago also indicates that "margins are growing despite the tough market environment and the company is managing to execute integrations in record time". GVC Gaesco forecasts a sustained improvement in "margin in the coming years to 13.5% in 2027", driven by two channels: the achievement of larger and more complex projects, and the growing percentage weight in revenues of high value-added business lines.
This new report from GVC Gaesco helps to show the market not only the strong potential of the company, but also our commitment to generating long-term shareholder value
The document also notes that the market remains highly atomised and that Izertis is "a key player in the consolidation process". In addition, GVC Gaesco points out that "the company is becoming better known and can bid for larger projects, which allows it to grow organically and also be more attractive in M&A operations, where the seller knows the growth potential of Izertis".
"Our main focus at the corporate level is on profitable growth. This new report from GVC Gaesco, together with the recent commencement of coverage by JB Capital, helps to show the market not only the strong potential of the company, but also our commitment to generating long-term shareholder value," has commented Rafael Cavanillas, Director of Investor Relations and Business Development at Izertis.
GVC Gaesco's analysis report can be found on Izertis' own website, as well as on the BME Growth website. GVC Gaesco was the first financial services entity to initiate coverage of the Izertis share, in November 2021, in which it set a Buy recommendation and a target price of €9.70/share.
Since its listing on the stock exchange three years ago, the digital transformation company has multiplied its market capitalisation value by 4.7 times. It made its debut on the stock exchange in November 2019 with a starting price of 1.70 euros per share, which represented a value of 36.2 million euros. 36 months later, the market capitalisation exceeds 195 million.
In the audited results presented in 2021, Izertis achieved a turnover of 65.05 million euros, with a normalised Ebitda of 7.27 million euros. At the end of the first half of 2022, these same figures increased by 31.3% and 67.9%, respectively, compared to the same period of the previous year.
Its 2020-2023 Strategic Plan is designed to achieve a turnover of 125 million euros and a normalised Ebitda of 12.5 million euros in this period. This would be backed by a CAGR (Constant Annual Growth Rate) of both figures of more than 25% over the last 11 years.