TeamViewer: Hard times expected for SMEs and TeamViewer; PT down; Remains a BUY
In the past, TeamViewer diluted its margins by questionable and high marketing spend related to expensive sponsorship agreements, with uncertain benefits for the company.
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What's it all about ?
In the past, TeamViewer diluted its margins by questionable and high marketing spend related to expensive sponsorship agreements, with uncertain benefits for the company. Even if the company guides for FY22 revenues in the range of EUR 565-580m (growth rate in the mid-teens) and an adjusted EBITDA margin of 45%-47%, this forecast, as well as the groups mid-term guidance (2022 and beyond) is at risk as macroeconomic headwinds could lead to a lower demand at price-sensitive SMB customers. Both the company's share buybacks as well as CEO Steil's EUR 1.2m insider transaction failed to support the share price, which has reached an all-time low (at EUR 9.12 per share). Reduced top- and bottom-line assumptions and higher costs of capital lead to a new PT of EUR 12, while the rating remains BUY after a poor performance in the last twelve months.
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