VusionGroup: Berenberg raises TP
(CercleFinance.com) - On Monday, Berenberg reiterated its buy recommendation on VusionGroup shares, raising its target price from E228 to E231, representing 21% upside potential.
The analyst is optimistic about the electronic label specialist, which he considers "well prepared" for FY 2025.
The broker says that it has raised its earnings estimates for this year, following better-than-expected 2024 results and the delivery of what it sees as a promising outlook.
CFO Thierry Lemaitre said the group had already secured 75% of the contracts needed to ensure that the sales target of E1.4bn in 2025 is met, it points out.
Despite the stock's strong recent performance, we believe that further deployments of its price automation technologies (ESL) and off-label software and services (VAS) - particularly in Europe, the US and the UK - could support the share price this year, it adds.
Furthermore, should Walmart decide to adopt a third VAS solution (in this case Captana computer vision) in addition to its current VusionCloud and in-store product availability subscriptions, our earnings forecasts could be revised upwards, the analyst concludes.
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