Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) has drifted lower since its interims in September where it flagged trading was normalising after theme park attendances rebounded post-pandemic, notes Shore Capital.
A trading update from the digital ticketing and virtual queue specialist is due before the end of the month.
ShoreCap expects this to show revenue accelerated in the second half of the year with overall year-on-year growth forecast at 8% to take the total to US$151 million.
Additionally, ShoreCap is forecasting underlying cash profits of US$23 million for the 12 months.
The broker adds that the merger of two of Accesso’s largest theme park customers in Six Flags and Cedar Fair has created some uncertainty, though this might also be an opportunity to roll out services to an even larger estate.
Currently, the company is trading at a discount to its UK and US SaaS peers, which ShoreCap believes is unwarranted, while in the long term, it is operating in a structurally growing market with an increasing number of visitors and demand for digitalisation.
“The group helps its customers gain a greater share of visitors' wallets as well as improve overall efficiency and ultimately if not valued by the market, we believe these characteristics could also make [Accesso] a bid target.
“Even at a discount to UK peers, you can still double the current share price.“
'Buy' is the recommendation.
Shares were 521p today, down 1.3%.