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Canaccord Genuity raises target price on Ideagen
9th Nov 2021 11:02
(Sharecast News) - Analysts at Canaccord Genuity raised their target price on software and services firm Ideagen from 325.0p to 350.0p on Tuesday, stating its recent acquisition of CompliSpace complemented the group "in all the right places".
Canaccord said Ideagen's acquisition of CompliSpace, an Australian governance and compliance software-as-a-service business for more than 950 schools and social care homes from private equity, signalled the expansion of the company's footprint into the Asia Pacific Region.
"We believe this deal creates cross-sell opportunities for the acquired platform into Ideagen's current core UK and US markets, particularly in the healthcare vertical," said the analysts.
The Canadian bank highlighted that in a recent note on the stock, it suspected that Ideagen could reach its mid-term financial targets of £100.0m in sales and £30.0m in adjusted underlying earnings early.
Well, Canaccord was now of the opinion that the CompliSpace acquisition and associated upgrades had led it to lift its forecasts far beyond these goalposts.
"We have raised sales by 9-20% with our earnings per share estimates upgraded by 5-7%, in part muted by higher interest charges due to the increase in net debt, as well as a higher tax rate," said Canaccord.
"Ideagen continues to execute on its strategy to expand its governance and compliance portfolio and ARR and CompliSpace further strengthens its capability to deliver double-digit organic growth in the future."
Canaccord said Ideagen's acquisition of CompliSpace, an Australian governance and compliance software-as-a-service business for more than 950 schools and social care homes from private equity, signalled the expansion of the company's footprint into the Asia Pacific Region.
"We believe this deal creates cross-sell opportunities for the acquired platform into Ideagen's current core UK and US markets, particularly in the healthcare vertical," said the analysts.
The Canadian bank highlighted that in a recent note on the stock, it suspected that Ideagen could reach its mid-term financial targets of £100.0m in sales and £30.0m in adjusted underlying earnings early.
Well, Canaccord was now of the opinion that the CompliSpace acquisition and associated upgrades had led it to lift its forecasts far beyond these goalposts.
"We have raised sales by 9-20% with our earnings per share estimates upgraded by 5-7%, in part muted by higher interest charges due to the increase in net debt, as well as a higher tax rate," said Canaccord.
"Ideagen continues to execute on its strategy to expand its governance and compliance portfolio and ARR and CompliSpace further strengthens its capability to deliver double-digit organic growth in the future."