(Boursier.com) — Wallix lost 2% to 8.15 euros the day after its half-yearly publication, marked by an increase in losses linked to the strengthening of its teams and efforts to optimize its organization. With an optimized, more efficient and more agile commercial organization, Wallix reiterates its ambitions for sustained growth for 2023 and 2024 and continuous improvement of its structural profitability to achieve a break-even operating result in 2024.
“Still anticipating a strong second half of 2023 (in line with the first half), with a mechanically stronger volume of activity than in H1 for reasons of usual seasonality in software, the coverage of fixed costs will be much better, giving hope for significantly reduced losses in the second part of the year, with the Group already expected to get closer to operational balance at the end of the financial year. Our Buy recommendation and our price target of 18 euros”, affirms TP ICAP Midcap .
From the press release and a company contact, Oddo BHF retains a message of confidence from management, in particular on the ability to maintain a growth rate similar to H1, and to accelerate in 2024 and 2025. Wallix can now rely on a commercial organization partly overhauled by the new CRO (particularly around go-to-market and the use of the Channel), and reduced structural costs (particularly at the managerial level). In terms of profitability, management still prioritizes achieving operational balance by 2024.
This publication is in line with the trajectory announced by the group as part of its 2025 plan, and confirms that the investments made in recent months, as well as the (necessary) work on the industrialization of sales are gradually bearing fruit. The upcoming development phase, which offers more visibility, remains promising, and Wallix seems capable of maintaining solid momentum over the coming quarters. This trajectory remains to be confirmed, but could quickly be associated with a significant rerating of the stock, especially since the stock is now at its lowest in terms of absolute valuation, underlines the broker. Thus, taking into account a risk/reward which appears very attractive at the current price, and a speculative component which cannot be ruled out, the analyst reiterates his ‘outperformance’ opinion and his target of 16 euros.
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