SRH AlsterResearch AG Update: CompuGroup Medical SE - Bolt-on acquisition; PT up, Down to Hold

CompuGroup Medical SE (Update) Technology MCap EUR 3,702m HOLD (from BUY), PT EUR 74 (from 72) (+7% potential) Research update CompuGroup announced a bolt-on acquisition of VISUS Health IT, a Germany based specialist for the management of digital medical data. Even though small in size (adding 2% of group sales) the deal’s rationale is to raise synergies from cross selling opportunities but also the expansion of CompuGroup’s offering into the radiology sector. CompuGroup is likely to pay the all cash purchase price of EUR 50m out of its free cash flow. The deal will have a slightly accretive effect on the group’s valuation. As no further clearing (e.g. antitrust) is necessary, we retroactively add VISUS Health IT as of Jan. 2021, resulting in slightly higher estimates and ultimately PT. Nonetheless, the good share price performance prompts us to reduce our rating from BUY to HOLD with new PT of EUR 74.00 (old 72.00), based on our DCF model. Upside 7% For 5 current investment ideas, check our Weekly Screener. This week we are looking for stocks that are the most neglected stocks by analysts. Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de