The Big Data specialist is trading at a significant discount to its peers
Companies: Fusionex International
Fusionex International (LSE: FSI), the award-winning Big Data, AI and IoT
developer released a strong trading update this morning saying
it expected to beat market expectations.
The group said it recorded
strong FY2016 financial performance, and anticipated that revenue would be
in line with expectations and EBITDA would be "significantly"
ahead of market expectations "despite the significant planned investment
in the marketing and promotion of Fusionex's products".
Building on the momentum
the firm achieved in H116, FSI continued delivering on its strategy and
according to management made strong progress throughout the year:
"In particular, the Group successfully launched the next generation of its proprietary Big Data Analytics ("BDA") platform, 'GIANT 2016', in June 2016."
The company confirmed that
GIANT 2016 had opened up a new addressable market in SMEs and had generated a
"substantial" pipeline for the product already.
Broker Panmure Gordon said it was a confident and reassuring update,
and reiterated its buy recommendation:
"Bullish update prompts us to upgrade... The successful launch of the next generation of its GIANT software (in H2) strengthens FXI’s position with its blue chip clients, while opening up a new SME market."
According to Panmure, FXI will materially beat its previous estimates:
Management describes the pipeline as “significant”; they also point to EBITDA expected to being “significantly ahead of market expectations (FY Sep’16) ... importantly, management notes has been achieved “despite significant investment in the marketing and promotion of Fusionex’s products”.
Accordingly, we increase our FY’17 EPS forecast. Finally, the board expects the positive momentum “to continue in the current year”.
Panmure says that despite
recent share gains, FSI still trade at a discount to its peers:
"...the shares trade on EV/sales and EV/EBITDA of 2.6x / 21.2x, while peers (Splunk, salesforce.com, Marketo, Tableau, Qlik) trade 50%+ / c.130% higher on average."
