Journeo (LON:JNEO) – Broker Has 470p Price Objective, For This £49m Valued Group That Boasts £12.9m Cash

This column has had a very comfortable ride so far with the selections of the shares of this leading provider of information systems and technical services to transport operators and local authorities – and that journey has not ended yet.

Last Tuesday morning, the group announced its Interim Results to end-June, showing revenues up 17% at £25.6m (£21.8m), while its underlying profit was up 40% at £3.4m (£2.5m), with earnings at half-time of 15.30p (9.03p) per share.

CEO Russ Singleton stated that:

"The Group has continued to deliver strong performance, achieving growth in revenues, profits, margins and order intake in H1 2024. 

We retain our strategy of bonding closely with our customers to develop and deliver new products, solutions and services, that meet their requirements of creating a more sustainable and efficient transport network. 

This focus, supported by the ongoing integration of Infotec, MultiQ and the newly formed Journeo Design Centre, is further strengthening our capabilities and driving the organic growth of the business as we continue to assess complementary acquisition targets.

Journeo is evolving into a more capable and resilient business as we aim to become the market-leader for Intelligent Transport Systems. 

With a growing customer base and a strong sales opportunity pipeline, the Board looks to the future with confidence."

Analyst Andrew Renton at Cavendish Capital Markets now has a 470p a share Price Objective on the £49m capitalised group’s equity.

For the year to end-December he estimates that the group will show some £50.0m (£46.1m) in sales, with adjusted pre-tax profits rising 20% to £4.8m (£4.0m), lifting earnings to 23.5p (19.8p) per share.

For 2025 his figures show £52.0m revenues, £5.0m profits and 23.8p earnings per share.

At 295p the shares obviously offer good upside, remember that the group has around £12.9m cash in its balance sheet, some 25% of its current market value.

(Profile 24.03.23 @ 147.5p set a Target Price of 175p*)

(Profile 24.07.23 @ 183p set a Target Price of 200p+*)