Bittnet Systems: Acquire, integrate, educate (BUY - initiation of coverage)
We initiate coverage of Bittnet Systems, a fast-growing Romanian technology company, with a BUY rating and a price target (PT) of RON 0.973/share, implying 49.6% upside. Bittnet was founded in 2007 by brothers Mihai and Cristian Logofatu, who are still the largest shareholders. The company was focused originally on providing IT training to companies, through its education division, and has since transitioned towards IT integration services, through its technology division. It is an active acquirer, and its transition towards IT integration and its fast growth have been driven by acquisitions executed over 2017-18. Bittnet listed on AeRO, Bucharest Stock Exchange’s alternative trading system, in 2015, when it reported RON 10m in revenues; the company grew its revenues by 10x to RON 100m in 2019, and it was promoted to the main market this year. Going forward, we expect revenues to grow by 22.3% per year over 2020-25E, with net income increasing by 72.5% per year over the same period, albeit from a small base. Bittnet is trading currently at a 2021E EV/sales of 0.9x, a 45% discount vs. its peer group, on our numbers.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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.