Accesso, the ticketing and virtual queuing specialist, trades at a discount to both US SaaS and UK SaaS/IT services peers, says broker Shore Capital something that it sees as unwarranted.
Results for 2023 were ahead of indications while, since the end of the year, the company has culled its lower margin B2C distribution business.
Combined with the removal of the legacy staffing issues, this will help give a step up to gross margins in the current year.
New client wins across the group have been encouraging while projects such as Saudi Entertainment Ventures (where ACSO is the key provider of ticketing and visitor management technology across 21 destinations) underpin assumptions that it is operating in a structurally growing industry supported by major investment into digitalisation and the tourism and entertainment markets.
“We believe actions made against lower-margin revenue streams help support the future profitability potential and improve the model quality... We continue to see scale opportunities across multiple geographies and sectors," said analysts.
'Buy' is Shore Cap’s investment view.
Shares rose 3% to 580p on a tough day generally in the market.