SRH AlsterResearch AG Update: mic AG - Bolt-on acquisition strengthens competitive positioning; BUY

 

mic AG (update) Technology MCap EUR 59m BUY, PT EUR 5.40 (upside 74%) mic AG_update mic / Pyramid announced that it has signed a term sheet to acquire German based competitor Polygon. In our view, the bolt-on acquisition (EUR 5m in 2020 sales / EUR 1m EBITDA) looks feasible, both from a strategic but also valuation point of view. Polygon therefore might become an additional corner stone in mic’s/Pyramid’s ambition to outpace the strongly growing market for intelligent hard and software at the POS. Until the closing is finalized, we keep our model unchanged. But even without this value accretive acquisition, mic’s shares offer plenty of upside. In fact, an upside potential of more than 70% to our PT of EUR 5.40 makes mic one of the cheapest stock in our coverage universe. We therefore stick to our BUY recommendation. 5 current investment ideas, check our Weekly Screener. This week we are looking for companies where employees are happy to work Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de