Coming weeks should supply further positive news flow / Remains a BUY
CANCOM's sales guidance of more than € 500m remains unchanged.
The increase in the guidance comes shortly after the release of very strong Q2 figures: CANCOM grew sales by 30% yoy to € 125m while EBITDA more than doubled to € 2.6m. Competitors like Bechtle have also recently reported good figures with sales growing by 16% and EBIT rising c. 60% yoy, showing that the industry as a whole is doing extremely well. But CANCOM outperforms its peers due to its:
- Role as an active consolidator of the industry (e.g. acquisition of Bürotex which should add c. € 55m sales in 2010)
- Focus on disproportionate growth areas like Managed Services and Cloud Computing.
This explains why we expect CANCOM to grow even stronger than guided for 2010 (eH&A: sales € 518m / EBITDA € 14.1m).
News flow should remain very positive driven by the announcement of additional highmargin orders and further acquisitions, which could add sales of € 100m, thus catapulting 2010E/2011E figures beyond our current estimates and attracting the interest of a wider base of institutional investors.
Recent director dealings are seen to be mainly the response to the increased demand from institutional investors. No further transactions of this kind are expected going forward. The current share price weakness presents a good BUYING opportunity. PT unchanged at € 11.50.