KRM22 PLC (LON:KRM) is “well placed” to consolidate a fragmented risk management market according to analysts at broker finnCap, which on Monday initiated coverage of the AIM-listed firm with a target price of 100p.
In its initiation note, the broker said the company’s management had a track record that excelled in the technology, software and financial sectors, and that the board’s expertise was “core” to the business and its investment value.
READ: KRM22 making strides as recurring revenues grow
finnCap added that the company’s 2018 results, announced today, demonstrated that the establishment of its Global Risk Management platform, which combines multiple software applications into one place, alongside initial products and revenue would advance the group’s ambitions going forward.
Analysts said they expected the company to achieve run rate positive cash generation and profitability during its 2020 financial year.
In early afternoon trading on Monday, KRM shares were steady at 75.5p, a 32% discount to finnCap’s target price.