Source: Sharecast
Berenberg noted that Pinewood Technologies shares were down by 33% on 16 February, following the disclosure by Apax Partners that it did not intend to make an offer for Pinewood.
However, in Berenberg's view, Pinewood remains one of the "most exciting growth stories in the UK market", with a leading product offering, a "highly attractive" financial profile and "significant" growth potential.
The German bank also thinks that Pinewood should be resilient to AI-based disruption, given the mission-critical nature and broad-based functionality of its solution, alongside its deep domain expertise and "the proactive approach" that it has taken to AI.
"Pinewood now trades on just 11.4x FY26 EV/EBITDA, compared to the 56% EBITDA CAGR implied by the mid-points of its FY25 and FY28 guidance," added Berenberg.
Reporting by Iain Gilbert at Sharecast.com