Berenberg ups GFT to 'buy' after strong Q1 growth

GFT Technologies SE

16/05/2022 10:39

** Berenberg upgrades GFT Technologies  GFTG.DE  to "buy"
from "hold" saying it was positively surprised by the IT
services provider's Q1 results and raised 2022 guidance
 urn:newsml:reuters.com:*:nASM000BFH
    ** It says the Stuttgart-based firm's Q1 results developed
faster than Berenberg had anticipated, after it last week
reported quarterly EBT of EUR 13.4 mln ($13.98 million), up 91%
year-on-year
    ** GFT also hiked its 2022 outlook for revenue and EBT by
6%, and EBITDA by 5%
    ** The broker highlights GFT's diversification of revenue,
with less reliance on its main client, Deutsche Bank  DBKGn.DE ,
and on its main European markets, with Canada and Brazil
representing a higher proportion of the group's revenue
    ** "Given its low leverage (YE 2021 EUR51m net debt) and
expected ongoing positive FCF, there is significant room for
inorganic growth," Berenberg says, hinting to potential
acquisition
    ** Out of five analysts that cover GFT, four rate the stock
"strong buy" or "buy" and ​one "hold"

($1 = 0.9587 euros)

 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))