SocGen starts Exclusive Networks with 'buy' on strong growth prospects

Exclusive Networks SAS

09/11/2021 10:34

** Societe Generale initiates coverage of cybersecurity and
cloud solutions group Exclusive Networks  EXN.PA  with "buy" and
EUR 24.5 target price, citing strong growth prospects in its
business sector
    ** SocGen sees the group benefiting from strong growth
prospects of the cybersecurity market over 2021-2025, citing
consultancy Gartner Group's growth expectations of around 14% a
year for the sector to reach $124 bln by 2025
    ** Among Exclusive Network's growth catalysts, SocGen sees
leveraging of existing vendors, expansion to new geographies,
addition of new vendors, extension of services offerings, and
acquisitions
    ** It also excepts the company to start dividend payment
from 2022, with a payout ratio of 25% in Q2 2022, while
forecasting adj. EBITA margin of 40% by 2025
    ** The broker however cites dependence on its top five
vendors, difficult expansion in the United States and tough
competition on the marketplace market as challenges 

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))