Logo Yazilim: Coding the digital future (BUY - initiation of coverage)
We initiate coverage of Turkey’s largest, publicly-listed enterprise software company, Logo Yazilim (Logo), with a 12M price target (PT) of TRY 188/share and a BUY rating. Established in 1984, Logo is a highly innovative, enterprise applications software (EAS) developer, focused mainly on ERP/CRM and HR solutions in the SME segment. Logo is the second-largest EAS player (commanding a 24% market share) in Turkey, and a prominent player in the ERP/leasing and HR software solutions market in Romania, through its subsidiary, Total Soft. Having delivered revenue/NI CAGRs of 33%/23% in 2015-20, the company is well-positioned, in our view, to capture further growth in both the local and international EAS markets, where the demand for digital transformation and process automation is gaining momentum, following the COVID-19 pandemic. We expect Logo to deliver 29%/35% revenue/NI CAGRs in 2020-23E, and we believe that the market is underestimating the company’s growth potential currently. Our blended valuation suggests a 12-month PT of TRY 188/share, offering 16% upside potential.Logo Yazilim Sanayi ve Ticaret AS is a Turkey-based company engaged in the development of computer operation systems, business application software, database structures, multimedia software, as well as in the provision of technical support and service, and training. The Company's products are offered in eight units: Small and Medium Enterprises (SME) products, Enterprise Resource Planning (ERP) products, Java products, Vertical solutions, Integration products, Human Resources (HR) products, Business Intelligence solutions, Mobile solutions and LOGO keys. Its products and services are used in a range of industries, such as distribution, machine and automotive spare parts, marine, packaging, retailing, cement, glass, steel, furniture, telecommunication, information technology (IT), tourism and textile. The Company has business partners in Azerbaijan, Egypt, Georgia, Germany, India, Iran, Iraq, Kazakhstan, Kyrgyzstan, Kosovo, Kuwait, Libya, Russia, Sudan, Syria, Turkmenistan, and the Unit
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.
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