Canaccord nudges up target price on Beeks Financial Cloud

21st Mar 2022 11:14

(Sharecast News) - Analysts at Canaccord Genuity nudged up their target price on software and services firm Beeks Financial Cloud from 210.0p to 220.0p on Monday after the group reported interim sales that beat expectations.

Canaccord Genuity, which reiterated its 'buy' rating on the stock, said Beeks' first-half sales were stronger than it had expected, while adjusted underlying earnings were in line.

The Canadian bank stated Beeks' outlook statement was positive and that it had upgraded full-year 2022-23 sales estimates in February after its first three Prox Cloud contracts were announced.

"With the new Prox Cloud offering gaining traction, combined with the underlying increase in Private Cloud offering uptake from tier 1 clients, we feel confident that sales growth can exceed 35% FY21/24 and margins increase from FY22est by c100bps pa in FY23 and again in FY24," said Canaccord. "We further increase our sales forecasts for FY22/23 with no change to adj EBIT and introduce FY24."