Claranova in the news

Claranova in the News | August 2021

“Claranova in the News” provides monthly updates of the latest news about Claranova and its businesses by offering a selection of articles, videos and press releases published in the preceding month.

 

PRESS RELEASES

 

Revenue 2020-2021

FY 2020-2021 revenue: Strong top line growth with a significant increase in profitability expected for the year – August 4, 2021

Claranova ended FY 2020-2021 (July 2020-June 2021) with €472 million in revenue, once again illustrating its growth potential with a 21% increase in revenue (+14% like-for-like). Excluding the currency effect, revenue, that is generated primarily in US dollars and British pounds, reached €496 million, without impacting operating margins. The Group’s growth has in consequence been sustained, as the health crisis continued to bolster activity for companies in the technology sector over the last year.

 

Strategic investment from US & Australian institutional investors
Strategic investment from US & Australian institutional investors – August 11, 2021

Claranova announced on August 11 an agreement with institutional investors Heights Capital Management (“Heights”) and Ophir Asset Management (“Ophir” and together with Heights, the “Investors”), for a strategic investment of €65 million to fund the acquisition of Avanquest’s minority interests.
The investment hails a new major milestone in Claranova’s development. Besides giving Claranova new substantial financial resources to simplify its capital structure through the acquisition, it creates for the first time in the company’s history a group of cornerstone shareholders to stabilize its shareholder structure and support the Group’s long-term development. Through this transaction, the Investors also demonstrate their confidence in the Group’s fundamentals, strategy and potential.

 

ANALYSTS’ PUBLICATIONS

 

Oddo BHF – “Growth stalls in Q4… no impact on earnings or the targets out to 2023” – August 5, 2021

Following the publication of the 2020-2021 revenue on the 4th, Oddo BHF maintains its rating “Outperformance” and its price target of €10.00.

“ Despite a mixed end to the year (disappointing top line but positive for margins), we still believe that the outlook (still credible) to 2023, as well as the steady decrease in Claranova’s risk profile (track record since 2013, business/product/geographic diversification, revenue profile, healthy balance sheet), remain by the market and still offer significant revaluation potential. By comparison, the Moonpig group in the UK (online store of personalized greeting cards and gifts, IPO in early 2021), which is a credible benchmark for PlanetArt after the delisting of Shutterfly in the US, is trading at 7x sales and 30x forward EBITDA. Moreover, several deals are still being envisaged in our view (buyout of minority interests, entry of reference shareholders, spin-off, M&A) and are likely to support the share price in the next few months.”

Target price: €10 – Outperformance

 

Invest Securities – “Improvement in profitability confirmed” – August 5, 2021

Invest Securities maintains its Buy recommendation after the publication of the 2020-2021 annual revenue, and raises its price target from €10.40 to €10.50.

“Claranova reported its FY20/21 (July 1 – June 30) sales yesterday evening after the close. While sales were a little lower than expected, the group indicated a very significant improvement in its profitability, with adjusted EBITDA as calculated by the group expected to virtually double compared to a year earlier. This trend supports our scenario, which we are consequently leaving unchanged. We have marginally adjusted our target price (€11.5 vs. €11.4) and are maintaining our BUY recommendation. As we detailed in our flash dated July 22, our comparisons with Moonpig, a peer of Planet Art (84% of the RNAV of Claranova) that was listed in London at the beginning of 2021, highlights the substantial undervaluation of Claranova at current share prices. The stock has rallied around +15% since our previous flash, but the upside potential remains significant.”

Target price: €11.50 – Buy

 

Portzamparc – “EBITDA doubles despite a lackluster Q4” – August 5, 2021

Following the publication of the 2020-2021 revenue on August 4, Portzamparc maintains its Buy recommendation and adjusts its price target from €11.20 to €10.80.

Target price: €10.80 (vs. €11.20) – Buy

The report is only accessible to Portzamparc customers

 

Oddo BHF – “Claranova kills two birds with one stone with announcement of two strategic operations, at the cost of a financial arrangement that remains complex” – August 12, 2021

“After the last project to buy out Avanquest’s minority shareholders was aborted in 2019 (due to an insufficient quorum), these strategic operations allow Claranova to meet two major challenges: 1/ to bring in reference shareholders in order to gradually stabilise the capital, while 2/ simplifying the capital structure with the acquisition of 100% of Avanquest. […] These transactions remain positive, and should be considered in their entirety (value creation despite the mechanical dilution linked to the issuance of new shares, or potential dilutive instruments), also helping solidify/simplify Claranova’s shareholder structure (often perceived as a push-back on the stock).”

Based on these factors, Oddo’s target price remains unchanged at €10.00.

Target price: €10 – Outperformance

 

Portzamparc – “Two birds with one stone”- August 13, 2021

“Claranova announces the acquisition of minority interests in the Avanquest division, financed by equity partnerships with two new institutional investors. This transaction simplifies of Claranova’s structure and will be an important lever for earnings growth.”

Taking into account these two transactions announced simultaneously, Portzamparc confirms its “Buy” recommendation and adjusts its target price from €10.80 to €10.20.

The report is only accessible to Portzamparc customers

Target price: €10.20 (vs. €10.80) – Buy

 

Edison – “Simplifying the corporate structure” – August 27, 2021

“Claranova has raised new funds of €65m via an equity issue to two new institutional shareholders and a convertible bond and plans to use these to partially fund the buyout of the Avanquest minority shareholders. Taking full ownership of Avanquest simplifies the group’s corporate structure and gives management full control over the future of the division.”

Following this analysis, Edison adjusts its target price from €13.90 to €12.90.

Target price: €12.90 (vs. €13.90) – Buy

 

Consensus at August 31, 2021 : €10.85
Stock price at August 31, 2021: €7.23

Consensus analysts august 2021

 

Agenda

Next meeting on October 20, for the 2020-2021 Annual Results announcement.

 


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