CentralNic Group PLC’s (LON:CNIC) capital markets day last week highlighted the opportunity for the internet domain specialist to grow both organically and through acquisition, according to Edison.
The capital markets event covered the benefits of scale, cross-selling and the integration of new businesses through a robust, automated M&A process, reported the research house.
Management focused on the opportunities for the different service lines, it said, highlighting a shared service approach as management pushes for higher value-added services to drive organic growth over the next three years.
Following the event, Edison forecast CentralNic revenue to almost double this year to US$203mln and to rise again to US$214mln in 2021, while profits are tipped to reach US$18.9mln on a normalised basis this year and US$23.4mln a year later.
“CentralNic continues to trade on an FY20 EV/EBITDA of 9.1x and a P/E of 15.8x, a material discount to its peer group, with our DCF indicating further share price upside. M&A could bring CentralNic’s multiples down further,” the research note said.
CentralNichares were unchanged today at 87p.