Holding a strong hand
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Edison Investment Research Limited
London, UK, 5 April 2024
Edison issues initiation on AUSTRIACARD (ACAG): Holding a strong hand AUSTRIACARD has a long heritage of providing secure services for smart card provision and document management in Europe. It has expanded its portfolio organically and through acquisition to encompass digital transformation technology and a strong franchise with challenger banks and is building on this with the development of its own digital solutions to support customers on their digital transformation journeys. We expect strong growth in the challenger bank market, adoption of digital solutions and value-added services in the smart card market to drive revenue growth and margin expansion over the forecast period. With a limited number of listed peers in the smart card business, our peer analysis is more focused on companies providing digital transformation software and services. This highlights the upside potential in both financial and valuation terms if the company successfully commercialises its in-house developed technology. On a discounted cash flow basis, using our pro forma forecasts to FY26, conservative revenue growth of 3% to FY33 and flat EBITDA margins from FY27, we arrive at a per share value of €10.0, 57% above the current share price. Click here to view the full report. All reports published by Edison are available to download free of charge from its website About Edison: As a content-led investor-relations business, Edison helps companies stand out and meet the right shareholders. Edison’s integrated investor relations solution combines expert analyst content, digital targeting and active investor engagement. This drives liquidity and valuations by building bigger, better informed and more engaged investor audiences globally. Edison has a proven history of increasing liquidity and valuations for its clients. Edison’s content can be viewed by all investors, anywhere in the world. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Katherine Thompson +44 (0)20 3077 5700 tech@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube http://www.youtube.com/edisonitv
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1874463 05-Apr-2024
