LiveChat Software: safe haven in times of uncertainty (upgraded to BUY)
We have upgraded our rating on LiveChat Software (LVC) to BUY, from Hold, and lifted our price target (PT) from PLN 104/share to PLN 121/share, implying 25% upside potential. LVC’s share price has depreciated 17% ytd, along with the derating of the growth companies visible in the global market, following the market-wide launch of interest rate hikes. However, we believe that the market has overreacted in this case and we see LVC’s current share price level as an attractive entry point for a company that is a safe haven in these current uncertain times: 1) its SaaS, B2B business model should be relatively resilient to macro deceleration; 2) the company has net cash and pays out dividends (5-6% dividend yields in 1-2YF); and 3) LVC benefits from PLN depreciation. We expect the company to deliver solid EBITDA growth (a 14% CAGR between FY21/22E and FY24/25E). On our forecasts (we are 9% above the Bloomberg consensus on FY22-23E EBITDA), LVC trades at a c.68% discount vs. its peers on its 1-3YF EV/EBITDAs (vs. the 57% average discount in the past 2Y).Livechat Software SA is a Poland-based company engaged in the software industry. The Company is a producer and global provider of software as a service (SaaS) LiveChat, communication software for business. LiveChat enables fast and intuitive communication between company's employees and customers visiting corporate Website. The application also tracks customers' activity on a Website. The Company produces and distributes software for business-to-consumer (B2C) and business-to-business (B2B) communication. Its product portfolio includes three types of LiveChat plans: Solo, dedicated to single user and offering such features as unlimited chats, ticketing system, enhanced security and basic reporting; Team, for numerous teams that additionally includes chat routing and groups creation; and Enterprise, for companies that, additionally to previous ones, provides advanced reporting, work scheduler and unlimited visits on a Website.
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.