'A turnaround is brewing' - TeamViewer rises after Berenberg ups to 'buy'

TeamViewer SE

17/04/2023 08:33

** Shares in Teamviewer  TMV.DE  are up 5%, on track for the
best day since February, after Berenberg raises the German
software company to "buy" from "hold", saying something exciting
is now brewing at the company after challenging 2021 and 2022 
    ** Berenberg says investors may have overlooked both the
ongoing turnaround in Teamviewer's SMB business (serving small
and medium-sized business) and the profitable upselling
opportunity as the investors are seemingly so focused on the
company's past performance
    ** It says that consensus for SMB resilience may be too
pessimistic, citing data from Google, the broker's own online
pricing analysis and Teamviewer's subscriber metrics show that
the tide may be turning for the company's SMB business
    ** "Wide margins and strong FCF looks sustainable" Berenberg
says, adding Teamviewer now screens as one of Europe's cheapest
software stocks which warrants a second look according to the
broker
    ** It expects Teamviewer to deliver adjusted EBITDA margins
of around 40% with double-digit FCF growth over the next three
years, saying "consensus is too cautious, this represents an
appealing entry point"
    ** The broker adds that "there is room for a significant
re-rating in Teamviewer's shares" as investors begin to realise
the company's fundamentals have turned around
    ** The stock tops Germany's mid-cap index  .MDAXI 
    
    
    

    

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))