GVC Gaesco raises target price for Izertis shares to 11.50 euros
The independent financial group GVC Gaesco has released on Monday its new report on Izertis shares, in which it has updated its estimates and raised the target price of the technology multinational to €11.5/share, reiterating its 'Buy' recommendation. The new price means an appreciation potential of 38% overlast Friday's closing market price.
This increase in the target price represents the third positive adjustment by GVC Gaesco in just two years. This decision is part of the "continued improvement of Izertis' financial performance, which has been consolidated after the presentation of the first half-year results".
The company is managing to increase significantly thanks to the change in the revenue mix
With these results, Izertis shows a 44.5% growth in total revenues, reaching 59.9 million euros, with a normalised ebitda of 64%, equivalent to 9.0 million euros.
This change in the target price "is not only supported by recent financial achievements, but also by recent acquisitions and new projections based on the market situation. The main novelty is in relation to margin, which the company is managing to increase significantly thanks to the change in the revenue mix, increasing the weight of revenues from higher value-added services.
This is the second upward update of the share price in a few days
GVC Gaesco highlights two key elements in its report, which are the "synergies obtained in acquisitions and cost control, despite the strong impact of inflation. This has led to growth in normalised ebitda, increasing both margin and gross margin by 2.1 percentage points to a remarkable 15%.
This is the second upward update of the share price in a few days, following JB Capital Markets "buy" recommendation and a "target price of 11.10 euros per share". In other words, this implies a revaluation potential that would multiply the value of the investment by 1.34 times.