finnCap has upgraded its revenue expectations for IQGeo Group PLC (AIM:IQG) following the software group's 2022 results announcement.
With the Comsof acquisition performing “exceptionally well”, the group generated a “remarkable” £17.4mln of revenue in the second half, leading corporate broker to believe that their previous £31mln forecast for full-year 2023 was too cautious.
However, the finnCap acknowledged that the H2 figures contained significant one-off revenue, including £6.5mln of services and £3.4mln of Demand Points revenue from Comsof.
The broker noted that earnings forecasts are already demanding, with adjusted EBITDA expected to rise from £1.9mln in 2022 to £6.1mln this year, and thus will remain unchanged for now.
finnCap repeated its price target of 230p a share, an 11% premium to the current price of 208.7p.