We believe CloudCall’s ABB to raise £2.4m this morning has substantially de-risked the balance sheet and clarified the investment case. CloudCall’s shares now trade on 2.2x FY19E EV/sales, at a 9% discount to the AIM Tech sector, in spite of superior sales growth (38% FY19E vs. 13%). We believe this is unwarranted in light of an improving risk-reward balance and a compelling growth story. We reiterate our Buy rating.
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Balance sheet bolstered: Buy
- Published:
30 Jan 2019 -
Author:
Kartik Swaminathan -
Pages:
3
We believe CloudCall’s ABB to raise £2.4m this morning has substantially de-risked the balance sheet and clarified the investment case. CloudCall’s shares now trade on 2.2x FY19E EV/sales, at a 9% discount to the AIM Tech sector, in spite of superior sales growth (38% FY19E vs. 13%). We believe this is unwarranted in light of an improving risk-reward balance and a compelling growth story. We reiterate our Buy rating.