Berenberg hikes target price on Next Fifteen following 'huge contract win'

Berenberg said Next Fifteen Communications, which announced that its Mach49 subsidiary had won a five-year innovation consulting contract worth $400.0m over the five fiscal years ending 2027, was now in the midst of "a watershed moment".

As a result, the German bank increased its full-year 2023-25 sales, underlying earnings and earnings per share forecasts by roughly 9-15%, stating the contract win also illustrated the success of Next15's transition to a data and technology-led growth consultant in recent years.

"We believe there is still significant upside to our estimates, from both organic growth and further M&A, and view the shares as materially undervalued on 17x P/E and 6% FCF yield for FY 2023E," said the analysts, who added that they view the 'buy'-rated firm as a top pick.