Accesso Technology Group (ACSO) has momentum behind it and margins are climbing, says Shore Capital.
Analyst Katie Cousins maintained her ‘buy’ recommendation and set a rough ‘fair value’ target price of £9 on the stock, which closed up 3% at 558p on Monday.
Friday’s interim results ‘highlighted strong double-digit growth along with improved profitability within the period’.
‘Operational momentum was clear with several contract renewals being announced and we were pleased to hear that, so far, the group has not observed a negative movement in its marketplace,’ said Cousins.
A specialist in virtual queuing systems, Cousins highlighted an opportunity for the business to target ski resorts and cross-selling the product set.
She raised revenue estimates and said there was ‘scope’ for further increases, depending on how costly the integration of the latest acquisition is, but pre-tax profit margins should return to 20% by 2025.