The investment banking giant Morgan Stanley has singled out three globally underappreciated tech stocks that it believes hold substantial growth potential.
What Happened: Morgan Stanley has identified CompuGroup Medical (OTC:CMPUY), a healthcare software provider, Exclusive Networks (OTC:EXNWF), a cybersecurity firm, and W.A.G. Payment Solutions as overlooked stocks with attractive valuations. The bank has assigned an overweight rating to all three, reported CNBC.
“As this theme of ‘broadening out’ becomes more important, we think investors will increasingly look to quality small caps at attractive valuations as sources of alpha,” said Morgan Stanley.
“CGM benefits from the typical attributes of the software business model e.g. high customer stickiness given the high switching costs, highly recurring revenue (~70%) providing high visibility, the ability to put through annual price increases, healthy margins which should be boosted by operating leverage and price increases, and healthy [free cash flow] generation,” the analysts wrote.
The bank views CompuGroup, which holds leading market positions in several countries, including Germany, France, and Austria, as the most undervalued stock in its software coverage. Morgan Stanley has set a price target of 37 euros for CompuGroup, suggesting a …
Full story available on Benzinga.com
The investment banking giant Morgan Stanley has singled out three globally underappreciated tech stocks that it believes hold substantial growth potential.
What Happened: Morgan Stanley has identified CompuGroup Medical (OTC:CMPUY), a healthcare software provider, Exclusive Networks (OTC:EXNWF), a cybersecurity firm, and W.A.G. Payment Solutions as overlooked stocks with attractive valuations. The bank has assigned an overweight rating to all three, reported CNBC.
“As this theme of ‘broadening out’ becomes more important, we think investors will increasingly look to quality small caps at attractive valuations as sources of alpha,” said Morgan Stanley.
“CGM benefits from the typical attributes of the software business model e.g. high customer stickiness given the high switching costs, highly recurring revenue (~70%) providing high visibility, the ability to put through annual price increases, healthy margins which should be boosted by operating leverage and price increases, and healthy [free cash flow] generation,” the analysts wrote.
The bank views CompuGroup, which holds leading market positions in several countries, including Germany, France, and Austria, as the most undervalued stock in its software coverage. Morgan Stanley has set a price target of 37 euros for CompuGroup, suggesting a …
Full story available on Benzinga.com
The investment banking giant Morgan Stanley has singled out three globally underappreciated tech stocks that it believes hold substantial growth potential.
What Happened: Morgan Stanley has identified CompuGroup Medical (OTC:CMPUY), a healthcare software provider, Exclusive Networks (OTC:EXNWF), a cybersecurity firm, and W.A.G. Payment Solutions as overlooked stocks with attractive valuations. The bank has assigned an overweight rating to all three, reported CNBC.
“As this theme of ‘broadening out’ becomes more important, we think investors will increasingly look to quality small caps at attractive valuations as sources of alpha,” said Morgan Stanley.
“CGM benefits from the typical attributes of the software business model e.g. high customer stickiness given the high switching costs, highly recurring revenue (~70%) providing high visibility, the ability to put through annual price increases, healthy margins which should be boosted by operating leverage and price increases, and healthy [free cash flow] generation,” the analysts wrote.
The bank views CompuGroup, which holds leading market positions in several countries, including Germany, France, and Austria, as the most undervalued stock in its software coverage. Morgan Stanley has set a price target of 37 euros for CompuGroup, suggesting a …Full story available on Benzinga.com Read MoreCMPUY, CompuGroup, Equities, Exclusive Networks, EXNWF, Kaustubh Bagalkote, Morgan Stanley, News, W.A.G. Payment Solutions, Global, Markets, CMPUY, EXNWF, News, Equities, Global, Markets, Benzinga Markets
