(Finance) – Intermonte analysts confirm the opinion on the stock WIIT to “Outperform” and assign a new target price of 40 euros.
The assessment comes after the publication of the 2021 financial statements of the company, leader in cloud services, which shows results “substantially in line with our expectations” – say the experts of the research department – adding that “our updated estimates push us to confirm our positive view on the titlewith the DCF-based target price now at $ 40 (reduced from $ 42, mainly due to the WACC up 10bps) and by the year 2023 (when most of the synergies of R42 and ERPTech will have fully materialized ) implies a “fair” 26x EV / EBITDA (broadly in line with pre-sell-off levels) and offers a compelling entry point on the stock, up around 33% from current price levels.
According to Intermonte analysts, WIIT should continue to benefit from its leading position as a digital champion, further consolidating small mergers and acquisitions goals in Italy and gaining scale in Germany. “WIIT – they add – is also well positioned in a market with solid growth prospects supported by an integrated technology shift from on-premise to cloud infrastructure and services. The company should capitalize on this trend through its strong market positioning in the premium cloud niche, suitable for mission-critical applications that require the highest SLAs, and leveraging its highly scalable business model. “
(Photo: Bethany Drouin)