Report

Target upgrade by 14.3% (Keyware)

TARGET CHANGE

CHANGE IN EPS2018 : € 0.18 vs 0.18 -0.63%
2019 : € 0.20 vs 0.22 -8.20%
We have upgraded our earnings forecast for FY18 due to the transition phase going well. Although the results have been affected by higher exceptional charges (significant terminal obsolescences and payment defaults by customers) in H1 18, we expect growth in operating profitability for the full FY18.

CHANGE IN DCF€ 2.17 vs 1.51 +43.9%
Our DCF valuation is supported by the increase in our forecasts in the medium to long term. Indeed, we believe that the strategy to become more of a software group will be profitable. The company, currently in the middle of its transition phase, is facing significant costs linked to its two recent acquisitions (Magellan and EasyOrder) but we expect that this will be largely compensated by the software sales growth in the following years.
Underlying
Keyware Technologies N.V.

Keyware Technologies NV. Keyware Technologies NV is a Belgium-based independent network service provider that offers electronic payment solutions. It is engaged in the: personalization, programming, installation, maintenance, rental and sale of fixed, portable and mobile payment terminals; implementation of payment transactions using Visa, MasterCard, Maestro, Amex, V-Pay, and JCB, among others; payment services for electronic-commerce and mobile-commerce; solutions for loyalty cards, as well as development and management of its payment transaction platform. The Company operates in two segments: Payment Terminals, engaged in the rental of terminals, the sale of payment terminals, installation of payment terminals, revenues related helpdesk and revenues relating to on-site interventions, as well as Payment Authorization, engaged in income related payment transactions and authorization services, transaction management for third parties, as well as loyalty processing and analysis services, among others.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

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Analysts
Laura Parisot

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