In a note to clients, the City broker’s analysts pointed out: “LTG is an integrated e-learning services and technologies provider for the corporate and government sectors. The group has done seven very complementary acquisitions over the last five years to build its strong proposition.”
They said: “This together with strong organic growth has led the market cap to grow from £34mln in 2014 to £700mln today.”
The analysts added: “Despite this, we believe LTG is on its next stage of development. The recent acquisition of PeopleFluent has extended its offering into human capital management and has expanded its client base in the US.”
They concluded: “We believe the acquisition provides substantial cross-selling opportunities and potential for margin expansion.”
The analysts said its forecasts for LTG indicate a three-year compound average growth rate in earnings per share of 28%, and noted that the stock currently trades on an attractive price/earnings to growth multiple of under 1 times.