We believe that successful execution of the company’s growth strategy could see the share valuation trending to the upper end of its peer group.
Blancco drive eraser for enterprise use software#
With Blancco having assembled a management team with experience in growing software businesses, we believe the company is taking a sensible approach to encouraging adoption of its software through its combined focus on direct sales, channel partners and ‘influencing the influencers’. Our forecasts assume that the company is successful in educating the market on the need for secure data erasure, resulting in a multi-year growth phase. Lower than expected constant currency growth rates appear to be one of the reasons for the share price decline however, management confirmed that it expects to meet consensus revenue forecast for FY17 (c £32m). Post the reaction to interim results, Blancco’s valuation sits in the middle of the range of UK high-growth software peers, but at the lower end of the range compared to global cybersecurity software companies. Valuation: Growth prospects not fully factored in
H117 results confirm strong organic growth.Business model – high recurring revenues.Sales and marketing key to exploiting market opportunity.Maintain erasure market leadership position.
Blancco drive eraser for enterprise use driver#
Blancco background: Transformation complete.Leader in data erasure and mobile diagnostics software.Sensitivities: Regulation, IP, competition.Valuation: Growth prospects not fully factored in.Financials: Strong organic growth driving earnings growth.Exploiting the opportunity in data erasure.
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