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Research Tree provides access to ongoing research coverage, media content and regulatory news on GFT TECHNOLOGIES SE. We currently have 7 research reports from 1 professional analysts.
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GFT TECHNOLOGIES SE
GFT TECHNOLOGIES SE
Q3 organic growth remains robust at 12%
15 Nov 16
Q3 numbers were in line with expectations and management has maintained both its FY16 and long-term guidance. The backdrop remains broadly unchanged, with demand for IT projects (predominantly digitisation) in the European commercial banking sector outweighing weakness in the Anglo Saxon investment banking markets. A recovery in the latter is largely dependent on improvements in the financial performance of investment banks. However, we note the investment banking sector needs to invest in IT to remain competitive. Given that the outlook is sustained, we believe the shares are attractive on c 13x our FY18 earnings.
Q1 constant currency organic growth was 7.6%
06 Jun 16
GFT reported a solid Q1, with constant currency organic growth of 7.6%. This was slightly below the long-term trend, as the group saw some deferrals in Anglo Saxon regions due to poor results in the investment banking sector and uncertainty relating to the imminent UK vote on the EU. Nevertheless, management expects orders to pick up later this month and in Q3, regardless of the outcome of the BREXIT vote. We have edged our forecasts up with the inclusion of Habber Tec Brazil, which GFT acquired in early April. In our view, if management can continue to maintain the momentum, the stock looks attractive, trading on c 17x our FY17e EPS.
FY15 was another year of healthy growth
21 Mar 16
FY15 was another year of solid growth at GFT, with organic revenue growth of 18% at constant currencies. This was achieved in spite of the turmoil in the European investment banking sector, as participants needed to invest in compliance projects and outsourcing trends remain favourable. In our view, if management can continue to maintain the momentum, the stock looks attractive, trading on c 18x our FY17e EPS.
De-rating provides an opportunity
11 Feb 16
GFT's shares have fallen sharply recently, tracking a steep fall in Deutsche Bank’s shares, along with broad declines across the banking sector. We note that Deutsche Bank generates c 40% of GFT’s revenues. At the time of the Q3 results, GFT said it expects stable revenues from Deutsche in FY16, with the growth coming from other parts of the business. GFT is on Deutsche’s strategic partner list, and GFT handles complex IT projects for Deutsche, along with maintenance of its core business. Competition in this space is low. The IT area at risk in the case of cost-cutting is the commodity IT business, which GFT is not involved in, and is mostly handled by large IT service providers (including the India-based majors). GFT's shares traded at c €32 in early December and, in the wake of the share price de-rating, now look significantly more attractive, trading on c 15x our maintained FY17 earnings.
Strong Q3 with guidance increased
23 Nov 15
GFT continued to grow apace, with organic revenue growth (excluding Rule Financial) of 19% in Q3. Margins continued to expand with the adjusted operating margin rising by 100bp to 11.0% over Q2. While FY15 growth has mainly come from investment banking, the pipeline for 2016 is focused on several large retail banking projects. Given management’s increased guidance, we have upgraded our EPS by forecasts by 2% in FY15 and 4% in FY16 and FY17. In our view, if management can continue to maintain the momentum, the stock still looks attractive, trading on c 22x our FY16 EPS.
Organic growth sustained at 23% in Q2
20 Aug 15
GFT Group produced another strong performance in Q2, to sustain 23% organic growth over H1. Following the disposal of its resourcing division, GFT is now an IT services pure-play focused on the financial services sector. The group’s adjusted operating margin rose to 10.0% in Q2 and we anticipate further margin expansion with revenue growth and profit recovery at Rule Financial. Noting management’s increased guidance and the strong pipeline for FY16, we have upgraded our EPS by forecasts by 11% in FY16 and 7% in FY17. Hence, the stock continues to look attractive, trading on c 17x our FY16 EPS.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
33% upgrade to January 2017 PBT
09 Jan 17
Redstone has released a trading update stating it ‘expects to report EBITDA at the upper end of market expectations’. This implies EBITDA of £1.8m which is above our current estimate of £1.5m. Accordingly, we are upgrading our PBT forecast for the year ending January 2017 by 33% to £1.2m from £0.9m. We reiterate our buy recommendation with a 2.2p price target implying 69% upside.