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SRH AlsterResearch AG Update: CompuGroup Medical SE - Share buyback program increased; Up to HOLD

SRH AlsterResearch AG Update: CompuGroup Medical SE - Share buyback program increased; Up to HOLD

Nachrichtenquelle: AlsterResearch AG
26.03.2021, 12:36  |  138   |   |   

CompuGroup released its full set of figures which reveal little surprises. However, the company yesterday announced that it has extended its share buyback program from 500K to 1m maximum shares.

CompuGroup AG (update)

Technology
MCap EUR 3.7bn

HOLD (from SELL), PT EUR 70.00 (downside 2%)
CompuGroup_update

CompuGroup released its full set of figures which reveal little surprises vs. the prelim. numbers from the beg. of Feb. The company sticks to its guided EUR 1-1.04bn in sales (eAR EUR 1.01bn), adjusted EBITDA of EUR 210-230m (eAR 222m) and EPS between EUR 1.70 and EUR 1.95 (eAR 1.81). However, the company yesterday announced that it has extended its share buyback program from 500K to 1m maximum shares, corresponding to approx. 1.9% of the company's share capital. We view this as a positive sign as this increases overall shareholder’s returns in the form of dividends and share buybacks. Keeping in mind the company’s decent capital structure (1.9x net debt/EBITDA 2021E) and cash generation ability (FCF 2021 guided at EUR 80m), we believe that there is plenty of room for returning cash to shareholders. We upgrade the stock from SELL to HOLD, mainly given the relative underperformance in recent weeks. We also slightly adjust our PT to EUR 70.00 (old EUR 65.00) as we incorporate slightly higher long-term growth assumptions and roll our valuation model one year forward.

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CompuGroup Medical Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de

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Disclaimer

SRH AlsterResearch AG Update: CompuGroup Medical SE - Share buyback program increased; Up to HOLD CompuGroup released its full set of figures which reveal little surprises vs. the prelim. numbers from the beg. of Feb. The company sticks to its guided EUR 1-1.04bn in sales (eAR EUR 1.01bn), adjusted EBITDA of EUR 210-230m (eAR 222m) and EPS between EUR 1.70 and EUR 1.95 (eAR 1.81). However, the company yesterday announced that it has extended its share buyback program from 500K to 1m maximum shares, corresponding to approx. 1.9% of the company's share capital.

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