Canaccord Genuity reiterates 'buy' rating on Celebrus

Canaccord Genuity said Celebrus' October update already suggested "a more balanced" revenue weighting this year, with the successful conversion of larger deals driving 60% year-on-year sales growth to £13.0m and a small H1 pre-tax profit.

The Canadian bank said the £13.0m in sales delivered in 1H made up roughly 40% of its full-year forecasts, which was "well ahead" of the 30% historic average. With the small pre-tax profits generated in the half also being above the typical "modest loss" in the period, the analysts noted that these results "somewhat de-risk" the back-half weighted H2 seasonality this year.

"We leave our forecasts unchanged which continue to expect operating leverage to drive 100-200bps annual adj. EBIT margin expansion from here, leading to an expected "sector top quartile" 24% FY23-26E EPS CAGR. The shares' current 14.7x cal. 2024E P/E and 1.6x EV/Sales multiples in our view significantly undervalue this 'best of breed' first-party customer data collection & integration platform with a blue chip customer base," said Canaccord.

Reporting by Iain Gilbert at Sharecast.com