Edison Initiates Coverage on GFT Technologies
LONDON, July 3, 2013 /PRNewswire/ –
Edison Investment research, a leading international investment research firm,
announces the initiation of full coverage of GFT Technologies (ETR:GFT), a technology
services and staffing business based in Stuttgart, Germany, specialising in the financial
Highlights of the analysis on GFT by Edison’s Technology analyst, Richard Jeans,
GFT’s core solutions business benefits from high levels of IT spending and complex
business requirements in the financial services industry. It also benefits from favourable
outsourcing trends in banking and has significant near-shore centres in Spain and Brazil.
Edison estimates that two-thirds of revenues are recurring in nature.
The recent acquisition of Sempla creates a significant presence in Italy, boosts group
margins and brings cross-selling opportunities. The strategy in Southern Europe is
opportunistic, and potentially highly rewarding if the timing is right.
Edison is forecasting average annual sales and EPS growth of 12% and 50% respectively
between 2012 and 2014. Growth is both organic, through expanding existing client
relationships, and geographic via acquisition. Operating margin expansion from 4% to 6.8%
is driven by the Sempla acquisition, the benefits of increased scale and near-shoring, and
falling non-core expenses.
The stock trades on 0.4x FY14 revenues and 5.6x operating profit, which is
significantly below its larger consulting peers on both measures. Edison’s DCF model
suggests a fair value of EUR6.53, 59% above the current level.
For the full report see:
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For more information please contact:
Richard Jeans Edison Investment Research +44-(0)20-3077-5700 Dan Ridsdale Edison Investment Research +44-(0)20-3077-5729 email@example.com
SOURCE Edison Investment Research