SDL held a well attended Analyst and Investor day yesterday at its Maidenhead HQ. The Group showcased its Helix, Insight and Tridum DX platforms, as well as offering a demonstration of the new Language Cloud portal which opens up the prospect of a fully automated machine translation portal in the future. We continue to see SDL as well placed within the premium content space (market growth estimated: 10% -15% pa), while also delivering growth within the user-generated content market (estimated growth: 15% – 25% pa). We make no changes to forecasts at this time. SDL trade on an FY’20E EV/EBITDA multiple of 9.9x, an attractive multiple given healthy growth, strong technology platforms and expected benefits from DLS integration.
