Esker: Stifel downgrades stock

(CercleFinance.com) - Stifel downgrades Esker shares from 'buy' to 'hold', while raising its target price from E210 to E285, following the publication of solid H1 results and the announcement of a proposed takeover bid at a price of E262 per share.


The broker considers the proposed price to be "fundamentally fair", pointing out that it values the document automation software vendor at 7.3x current sales, 31.7x 2025 EBITDA and 57x 2025 earnings.

Despite this, the share price could rise, it believes, pointing out that higher multiples have been observed for recent transactions, that competing offers are not impossible, and that the free float exceeds 80%.


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