LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity raised their target price on software firm Kainos from 1,350.0p to 1,525.0p on Monday, stating the group was "not slowing down".
Canaccord Genuity, which has a 'buy' rating on the stock, noted that following Kainos' "very strong" trading performance, flagged during its September update, reported sales rose 26% in the first half to £180.0m.

As a result, Canaccord raised its sales estimates by 5%, with the implied 19% year-on-year growth in the second half "well underpinned by backlog".

"Our adj. EPS estimates for the current financial year are upgraded by 3%. We have also trimmed our FY25E free cash flow and net cash estimates by ~£16m to account for the planned new headquarters," said the Canadian bank.

"Our thesis remains unchanged - after digesting post-COVID cost and margin headwinds in FY22, Kainos is now firmly back on a double-digit EPS growth path. In a bull case scenario where we assume the company continues on the current trajectory (+19% revenue CAGR) we see three-year bull case upside potential to £19/share (FY26E EPS of 76p @ 25x P/E)."





Reporting by Iain Gilbert at Sharecast.com

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