Source: Sharecast
Canaccord Genuity said Celebrus' October update already suggested "a more balanced" revenue weighting this year, with the successful conversion of larger deals driving 60% year-on-year sales growth to £13.0m and a small H1 pre-tax profit.
The Canadian bank said the £13.0m in sales delivered in 1H made up roughly 40% of its full-year forecasts, which was "well ahead" of the 30% historic average. With the small pre-tax profits generated in the half also being above the typical "modest loss" in the period, the analysts noted that these results "somewhat de-risk" the back-half weighted H2 seasonality this year.
"We leave our forecasts unchanged which continue to expect operating leverage to drive 100-200bps annual adj. EBIT margin expansion from here, leading to an expected "sector top quartile" 24% FY23-26E EPS CAGR. The shares' current 14.7x cal. 2024E P/E and 1.6x EV/Sales multiples in our view significantly undervalue this 'best of breed' first-party customer data collection & integration platform with a blue chip customer base," said Canaccord.
Reporting by Iain Gilbert at Sharecast.com