viewCorero Network Security PLC

Corero Network Security's outlook is best for years, says broker

The market for DDoS protection is only going in one direction [up], said Cenkos.

Corero Network Security PLC -

Corero Network Security PLC (LON:COR) has been upgraded to a ‘buy’ by its house broker Cenkos, which says the outlook for the cybersecurity group is the best it’s been for years.

A backdrop of growing utilisation of cloud services and the inherent risk to network security, means the market for DDoS protection is only going in one direction [up], said Cenkos.

Revenues in the half-year jumped 48%, but orders were up 58% and with the collaboration with US tech giant Juniper starting now to make a material impact, sales momentum should continue going forward says the broker.

Annualised recurring revenues rose to US$8.8mln in the first half, while gross cash at the end of the period was US$6.2mln.

 “On the basis that roughly 80% of orders might be converted into revenues in any one period, the reported level of order intake is consistent with our revenue forecasts for 2020 (US$16.1mln),” Cenkos said.

“Trading on 3.3x FY20E EV (enterprise value) /sales, the current rating is not commensurate with the current growth rate being delivered by the stock.

“With sufficient cash to cover our expected H2E cash outflow of US$3.5mln, we are buyers.”

Shares were unchanged at 8.5p.

Quick facts: Corero Network Security PLC

Price: 8.25 GBX

Market: AIM
Market Cap: £40.83 m


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Corero Network Security PLC named herein, including the promotion by the Company of Corero Network Security PLC in any Content on the Site, the...



Market Report: FTSE 100 jumps as Asian markets near five-month highs

Headlines from the Proactive UK newsroom. The FTSE 100 jumped higher as Asian markets perked up despite the rising number of US COVID-19 cases. The London index jumped 68 to 6,163. QUIZ PLC (LON:QUIZ) has suspended a supplier in the Leicester area after weekend reports it was paying its...

on 13/7/20

2 min read