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StatPro "increasing traction with client migration", N+1 Singer says

Shares currently trade at 89p; N+1 Singer thinks they are worth 169p.
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StatPro shares: cheap at almost half the price

After StatPro Group PLC’s (LON:SOG) strong full-year results last week N+1 Singer has increased its earnings estimates for the software firm.

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.

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