Equasens: Stifel still on hold

(CercleFinance.com) - Stifel maintains its "Hold" rating on Equasens shares, with an unchanged target price of E66 (cp: E58.
2, +1.4%).

The analyst reports that Equasens has confirmed the long-awaited acquisition of AD Apotheken Datenverarbeitung GmbH & Co. KG (ADV), a German pharmacy software company with estimated sales of around E5m.

Stifel considers this target to be small (2% market share), although strategically very important. "The company aims at reaching the top three in five years' time, which would require reaching >20% market share, a highly unlikely target, in our view", the analyst adds.

Stifel points out that Equasens has been keen to enter the pharmaceutical software market for years, although this acquisition will require more investment to grow, potentially putting its operating margin under pressure.


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