InVision AG: Warburg Research Upgrades Target Price to EUR 29.00
Felix Ellmann, analyst of Warburg Research, upgrades the target share price of InVision AG (ISIN: DE0005859698) from EUR 25.00 to EUR 29.00. The “Buy” rating remains unchanged. On 14th October 2013, InVision AG published its preliminary nine-month results for 2013 and thereby met the analyst’s expectations.
Ellmann explains in his research report, published on 16th October 2013, that he raises his forecasts for InVision AG based on the respectable figures and momentum in the SaaS field. Additionally, the risk discounts would be reduced as the company repeatedly achieves its targets and as visibility improved in the cloud business.
The overall revenue from software and subscriptions rose slightly from EUR 7.9 million to EUR 8.1 million. While the classic licence business (on-premise) declined, the cloud/SaaS business improved. The annual increase would be more than 50% on a nine-month basis and compensated for the development in the on-premise licence business. The service revenue remained relatively constant at EUR 1.9 million. Additionally, the belated effects of cost cutting continued to have a positive effect.
For 2013, Ellmann anticipates a doubling of the result. With a lower cost base and greater momentum in cloud/SaaS revenues, the analyst expects a further increase in strong earnings for 2014. The revenues from the cloud business are distinguished largely by the fact that they generated barely any direct costs.
Ellmann reports that the balance sheet also reflects good operative development. Despite the buyback of own shares to the value of EUR 0.6 million, liquid funds doubled since the end of 2012, from EUR 2.5 million to EUR 4.9 million. The analyst expects another share buyback.
The complete Warburg Research report, “InVision meets expectations”, is now available for download from InVision’s website at: https://www.ivx.com/investors/analyst-reports.