The market is seemingly in ‘wait and see mode’ (ahead of pipeline conversion) and while this could be considered logical, it’s also prudent, given CER’s long-term track record (+14% sales CAGR, since IPO) already demonstrates a winning formula, as the market has gravitated towards CER’s differentiated subscription-based product. Success has been particularly prevalent in Europe (77%/Group revs), while recent deals in Namibia and Armenia highlight the Group’s growing reach and relevance. FY26 forecasts reflect optimism regarding new business conversion, while our prudent margin assumptions offer outperformance potential, such that the stock could actually be trading on c.21x FY26 P/E (vs. 25x, as per forecasts). We would be inclined to take advance of the attractive odds being offered for this proven winner.
