(Finance) – Equity he cut to 9.00 euros per share (from the previous 10.80 euros) the target price on Cy4Gatea company listed on Euronext STAR Milan and active in the cyber intelligence and security market, confirming the recommendation on the title to “Buy“. The revised rating came after the company reported preliminary FY23 revenue of approximately €65 million (vs. €80 million expected).
This result was influenced: by one slippage of a significant order of 13 million euros (foreign Cyber Intelligence), awarded in mid-December but whose suspensive conditions were only satisfied in January; from the slowdown in the foreign market in the important 4Q23, also due to the heated conflicts in some geographical areas.
While awaiting the final results (scheduled for March 14), the broker changes estimates: for 2023, reduces turnover from 80 to 65 million euros, with an Adj. EBITDA at 11 million euros compared to the previous 24 million euros, and an NFP from -1 million to -11 million euros; for the 2024reduces turnover from 92 to 89 million euros (-3%), with an Adj. EBITDA to 29 from 31 million euros (-6%), and an NFP from 1 million to -10 million euros.
“The results are weaker than expected, with the company still significantly influenced by the execution or otherwise of important orders in the last part of the year – we read in the note – We believe, however, that management has the necessary levers to improve operating results in 2024 and beyond, but it will essential to provide visibility on objectives throughout the year for a re-rating of the security“.