Jyske still positive on Netcompany after 'staggering' Q2
12/08/2022 14:34
** Jyske Bank cuts Netcompany NETCG.CO to "buy" from
"strong buy" after the Danish IT services provider on Thursday
posted "disappointing" Q2 results, sending the stock to a record
low urn:newsml:reuters.com:*:nL8N2ZN2GP
** Though Jyske points at "disappointing" revenue (7.3%
growth y/y) and a "historic" low profitability (EBITA margin
12.8%), it says one bad quarter is not enough to affect an
overall positive assessment of the stock
** The report is "staggering" since guidance is missed by
far, yet guidance for 2022 is retained, the broker says
** The broker says the company's organic growth guidance of
14-19% and EBITA margin above 23% will be difficult to
accomplish, but it points to a low-cost business model compared
to competitors to sustain organic growth and profitability
** "Valuation seems low at the moment and we think the stock
can rise without this being caused by positive estimate
adjustments," the bank says
(Reporting by Jacob Rasmussen)
((jacob.rasmussen@thomsonreuters.com))