JB Capital raises Izertis' price target to €11.10

JB Capital raises Izertis' price target to €11.10 and EthiFinance upgrades its rating to 'BB+'

The independent financial services firm JB Capital Markets has updated its analysis of Izertis shares, with a "Buy" recommendation and a "target price of 11.10 euros per share". This represents an upside potential of 32.8% compared to last Friday's closing market price of 8.36 euros per share.

Equity Research highlights that the technology consultancy has "consistently outperformed the Spanish IT consulting sector in recent years, with a substantial 23 percentage point lead (revenue growth) from 2016 to 2022". In addition, it expects the company to maintain "solid growth momentum, supported by its strategic position".

According to JB Capital, it expects "an improvement due to cross-selling opportunities", which are "enhanced by its recent acquisitions and access to larger customers, which should drive economies of scale". In this way, the financial firm stresses that the share price is still "undervalued compared to its current price".

At the same time, the rating agency EthiFinance has made public the improvement of Izertis' credit rating, upgrading it to 'BB+'. According to its report, this upward variation as a consequence of the "solid financial profile, highlighting the controlled level of indebtedness, together with a high level of financial autonomy". This is also favoured by a business profile "strengthened by the consolidation of competitive advantages and greater operational diversification".

The publication of both reports coincides with the technology consulting firm's fourth year of trading since joining BME Growth in November 2019. Since then, it has multiplied its share price by 4.9, outperforming the main indices (Nasdaq, SP500 and IBEX 35). It made its debut on the stock exchange with a starting price of 1.70 euros per share, representing a value of 36.2 million euros. 48 months later, the capitalisation reaches 206 million.

Izertis has multiplied its market capitalization value by 4.9 times in the last four years

Acceleration in their numbers

The technology multinational Izertis closed the first half of the year with total revenues of 59.9 million euros, a 45% improvement over the same period last year. In terms of normalised EBITDA, the increase compared to the first half of 2022 was 64% to EUR 9.0 million.

For its part, the normalised ebitda margin on revenues grew to 15%, doubling the figure in just three years, which "marks an all-time high and is the result of continuous optimisation in the efficiency of the company's operating processes, and technological specialisation in the highest value layer services," said Izertis.