Berenberg raises target price on Cerillion following 'record year'

Analysts at Berenberg raised their target price on software firm Cerillion from 1,400.0p to 1,500.0p on Monday on the back of the group's "record year".

Revenues came to £39.2m, with growth in the period driven by record orders of £30.8m from existing customers, while adjusted underlying earnings printed at £18.1m, which represents a margin of 46.2%, and adjusted pre-tax profits were £16.8m, 8% higher than consensus estimates.

Cerillion's new customer sales pipeline grew by 16% to £243.0m and its back-order book was at £52.5m as of November following recent new contract wins – both of which were record figures.

The German bank increased its FY24 adjusted EBITDA and earnings per share forecasts by 4% and 7%, respectively, and noted the shares were trading on a 28.6x FY24E price-to-earnings ratio.

"Cerillion continues to deliver consistent organic upgrades, supported by record demand and a high proportion of revenue visibility driven by its record back-order book," said Berenberg.

Reporting by Iain Gilbert at Sharecast.com