By Abigail Townsend
Date: Monday 22 Jun 2020
LONDON (ShareCast) - (Sharecast News) - Goldman Sachs has initiated coverage of cybersecurity specialist Avast with a 'buy' recommendation, helping push the stock higher during Monday trading.
The bank said the consumer-facing software firm was set to benefit from increasing work from home trends "in a heightened cyber risk environment".
"With a geographically diversified user based of 435m+, we believe the market under-appreciates Avast's opportunity for earnings growth, further augmented by upselling/cross-selling product adjacencies, such as privacy and Internet of Things, which we expect to drive a 7% revenue compound annual growth rate and a 10% free cash flow CAGR for Avast.
"We therefore see an attractive opportunity ahead of the first half results on 12 August, and in listed the stock at 'buy' with a 12-month price target of 600p, offering 21% upside."
Avast, which debuted on the London market two years ago, joined the FTSE 100 earlier this month. Last year it reported full-year earnings before interest and tax of $460m on revenues of $873m. Goldman Sachs is forecasting 2020 revenues of $897m and EBIT of $473m.
As at 1445 BST, shares in Avast were ahead 3% at 523.50p
|52 Week High||600.00p|
|52 Week Low||420.00p|
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