Datagroup: M&A driven gains hit a speed bump - Berenberg cuts

Datagroup SE

02/06/2020 07:59

** Berenberg cuts Datagroup  D6HG.DE  to "hold" from "buy",
saying the German IT service provider needs "a pause for breath"
to integrate its business after a period of M&A-driven growth
    ** Further industrialisation of Datagroup's services will
help it in the long run, but dilutive effects from recent
acquisitions have burdened its EBITDA margin, the broker says
    ** While Datagroup has the capacity to do even more M&A this
year, this will probably be limited to smaller acquisitions
focused on building competence and not scale, Berenberg adds
    ** The COVID-19 pandemic also looks set to hurt Datagroup's
growth, especially in its robotic process automation business
and migrating new customers to its systems, according to the
broker 

 ((zuzanna.szymanska@tr.com))