Analysts at N+1 Singer have upgraded their recommendation and hiked their price target for ticket and queue management firm Accesso Technology Group PLC (LON:ACSO) following last week’s “solid” set of interims.
Accesso signed up 40 new clients in the first half which helped it deliver an adjusted operating profit – which is what it considers to be a key underlying metric – of US$46.6mln (H1 2016: US$39.7mln).
READ: Accesso looking forward to busy second half
N+1’s Adam Lawson has upped his full-year earnings per share forecast to reflect a lower effective tax rate but said the main reason for his bullish outlook is because of the impact of recent acquisitions.
“The major driver to our target price increasing from £17.47 to £21.15 is the roll-forward of our base valuation year to reflect a full-year contribution from the Ingresso and TE2 acquisitions,” Lawson wrote in a note this morning.
This increase, together with improving earnings momentum, drives our upgrade from ‘hold’ to ‘buy’.”
Accesso shares were broadly flat on Friday morning at £18.75.