Frequentis re-initated at BUY, TP EUR 22 - Tailwind from the crisis
Following a transfer of coverage, we re-initiate coverage of Frequentis with a BUY rating and a price target of EUR 22.0. Management indicated an increasing order intake yoy in 1Q 20 and reported having run at full capacity during the Covid-19 shutdowns. Frequentis continued to report larger orders in April and May and managed to proceed with current projects by introducing and clients accepting new kinds of acceptance tests (virtual Factory and Site Acceptance Tests (FAT/SAT)) instead of physical ones and switched to partially online trainings. Also, the group followed through with an employee share participation programme through a capital increase by 80k shares at a 20% discount in early May 2020 and acquired a 51% stake in German runway taxi operations management company ATRiCS. With management underscoring the independence from actual traffic figures and the pandemic accelerating the demand for remote operations or contingency systems, we expect revenues to hold up this year and would only see a slowdown in momentum as air traffic and public safety budgets are redrawn in 2021e.Frequentis AG is an Austria-based supplier of communications and information systems, diversifying its activities into two business segments: ATM (Air Traffic Management) business segment, which includes ATM Civil, including Information Management, and Defense business fields, and PST (Public Safety & Transport) business segment, which includes Public Safety, Public Transport and Maritime business fields. As of December 31, 2010, the Company had seven wholly owned subsidiaries in the area of Sales & Operations, four wholly owned subsidiaries and one majority owned subsidiary, as well as one affiliate, APUS Software GmbH, in the area of Software, and two wholly owned, one majority owned, one minority owned, as well as one affiliate, 3T Communications AG, in the area of Services. The Company's subsidiaries are located in the United States, the United Kingdom, Canada, Australia, Germany, Singapore, Slovak Republic, Romania, and the Czech Republic.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.