IQGeo Group PLC (AIM:IQG) has received a raft of upgrades to full-year forecasts from its house broker after what it described as an excellent executive of its land and expand strategy.
Services revenue rose 122% to £8.8 million in the first six months and Cavendish expects this strong growth will drive robust long-term growth in recurring revenue.
Cavendish has raised its full-year 2023 and 2024 revenue forecasts by 4% and 5%, with high-margin subscription revenue upgrades of 7% and 16%.
Forecasts for underlying 2024 underlying profits (adjusted EBITDA) rise by 4% though higher capitalised R&D means net cash is now expected to be £8.9 million and £13.0 million this year and next.
Cavendish expects more new contracts as telecoms groups upgrade broadband networks plus M&A opportunities.
Its target price on IQGeo is 350p against 263p, down 9% today.