- Read StatPro confident of pressing home early mover advantage
- Watch CEO Justin Wheatley predict 2017 will be group’s best year
The outlook for the business looks positive, in N+1 Singer’s view, given healthy growth in the recurring revenue base, the improvement in other key performance indicators and a growing prospect line.
The broker raised its forecast for current year revenue by 7%, and its estimate of underlying earnings (EBITDA) has been increased by 4%.
New estimates for 2018 have been unveiled that project 8% growth in revenue and 9% in EBITDA.
The broker believes that the portfolio analytics software provider’s early move to the cloud will deliver accelerating revenue growth and fatter margins, and accordingly it has raised its target price from 163p to 169p.
N+1 Singer rates StatPro shares a ‘buy’.
“A positive start has been made to FY 2017 as evidenced by the six-year €3mln contract signed earlier this month. This demonstrated the potential for conversion premiums and extended contract terms when converting [StatPro] Seven clients,” the broker said.
StatPro Seven is the company’s legacy product.
“The recurring revenue base provides strong underpinning to this year’s numbers, and 30 clients scheduled to review [the] Revolution Performance [module] suggests increasing traction with client migration,” N+1 Singer suggested.
Shares in StatPro were unchanged at 89p today.