(CercleFinance.com) – Berenberg renewed its buy recommendation on Esker on Wednesday while lowering its target price from 200 to 180 euros, which still shows an upside potential of 27%.
In a research note, the analyst points out that the document dematerialization specialist is benefiting from favorable trends, with a market expected to grow by 10% annually over the next five years.
Beyond the digitization process that is gaining companies, Berenberg points out that the group’s activity is also supported by regulatory factors favoring electronic invoicing.
The intermediary also evokes a ‘resilient’ and ‘self-financed’ business model, thus expecting that Esker will continue to allocate 11% of its turnover to its investments.
Given the company’s cash position, Berenberg also believes that Esker could spend some 80 million euros on acquisitions to improve its competitiveness and gain market share in new regions.
At current levels, Esker shares are at a 55% discount to their closest comparable, the American Coupa, he concludes in his note.
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