Next Tuesday morning, 24th September, this company will also be announcing its Interim Results, but to end-June this year.
The London-based group also has operational centres in Marlborough, Massachusetts, USA, and in Edinburgh.
The business is a leading provider of distributed denial-of-service (DDoS) protection solutions, specialising in automatic detection and protection solutions with network visibility, analytics, and reporting tools.
Corero's technology protects against external and internal DDoS threats in complex edge and subscriber environments, ensuring internet service availability.
Toward the end of July, the group issued a Trading Update for the six months to end-June, showing that its annual recurring revenues were up another 12% at $17.2m ($15.3m), while its group revenue had grown 16% to $12.2m ($10.5m) for the first half.
There have been a recent spate of new customer wins showing through, which is very encouraging.
Also quite bullish is the point that the group had a record cash balance at the period-end, of some $7.9m ($6.2m).
At the time CEO Carl Herberger stated that:
"I am pleased to report that our enhanced growth strategy has already delivered results, including several major new customer wins resulting in an increase in revenue and ARR.
These achievements underscore the robustness of our business model and the sustained demand for our cutting-edge DDoS protection solutions.
Further, our momentum is building as we enter the second half of the year, which positions us well to capitalise on new opportunities and drive further growth.
The strong financial performance in H1 2024 and record pipeline reaffirms our confidence in achieving our full-year targets."
Analysts at Canaccord Genuity Capital Markets rate the group’s shares as a Buy, looking for 23.5p as their Price Objective.
For the current year to end-December they estimate sales rising to $25.3m ($22.3m), turning the group around from a £0.4m loss in 2023 to a $0.2m adjusted pre-tax profit for this year.
For 2025 the analysts look for $28.8m sales, $1.3m profits and 0.28c per share in earnings.
The brokers note that Corero's share price has gone from strength to strength this year as UK investors have been warming up the cybersec sector and the team under new CEO Carl Herberger has been delivering ongoing deal momentum.
Over at Zeus Capital, analyst Bob Liao has a 21.2p value on the group’s shares.
He is more optimistic – looking for $25.4m sales to produce a $0.7m profit and earnings of 0.14c per share for 2024.
The 2025 year could well see $28.8m revenues, $1.9m profits and 0.37c per share in earnings.
This company already enjoys a premium rating and valuation, with its shares at 19.25p giving it a market capitalisation of £99m – even so, I do fancy that its shares are likely to rise above the broker’s Price Objectives over the next year or so.
(Profile 14.04.20 @ 4.2p set a Target Price of 6.5p*)
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