LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity raised their target price on media outfit System1 Group from 380.0p to 430.0p on Wednesday after dat products made up almost half of the firm's second-quarter revenues.
Canaccord, which also reiterated its 'buy' rating on the stock, noted that System1 group revenues grew 22% to £12.3m in the first half against Covid-19 impacted comparatives, in line with the guidance provided at the time of the company's annual general meeting trading update.

While it acknowledged that revenues of £5.8m were "sequentially softer" than the £6.5m seen in the first quarter, Canaccord pointed out that automated data products contributed 45% of the mix, compared to just 28% in the first three months of the year.

"We estimate this represents quarter-on-quarter growth of 43% in data product revenues (from £1.8m). Our estimates suggest that data will contribute 50% of H2 revenues (up from 36% in H1) as SYS1 customers increasingly replace ad hoc consultancy with faster and cheaper automated products," said Canaccord.

"As a result, we see data contributing 44% (£11.8m) of group revenues for FY22E as the opportunity scales."

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