Inspired Share Price (INSE)

Excellent start - up another 3.5p, and almost moving up on every buy, perhaps suggesting not much stock around.

Crikey, even INSE's joining in today's small cap rally....about time. Loads of upside here for a fair valuation imo.

As a reminder, Liberum recently issued a new 36 page Buy note, with a 200p price target....

Here's their summary:

"Inspired Plc

The transition to a more diversified business is on track

The FY 23 results were slightly ahead of our estimates. We make four key points on the business: 1) Inspired has evolved from a Third-Party Intermediary (TPI) in the energy market to a technology-enabled services provider; 2) synergies between divisions help cross-selling and make Inspired uniquely qualified to help with both sides of the energy equation (cost + consumption); 3) underlying EBITDA is expected to double in five years (FY 22-27), indicating 24% upside to our FY 26 estimate; 4) the business is becoming less reliant on Energy Assurance profits, which helps increase earnings quality. In terms of valuation, a CY 24 P/E of 4.6x is attractive given the growth.

Key points

FY 23 results were slightly ahead.

Optimisation was the star performer.

Net debt (exc. leases) was flat at the H1 23 level of £49m.

Contingent consideration being paid.

Value drivers

Scope to grow in areas like Optimisation, Software and ESG.

These should accelerate growth and increase the valuation multiple.

A huge addressable market.

inspired chief executive officer, mark dickinson, chief commercial officer, david ****shott and cfo, paul connor present final results for the year ended 31 december 2023.

watch the video here: https://www.piworld.co.uk/company-videos/inspired-inse-full-year-2023-results-presentation-march-2024/

or listen to the podcast here: https://piworld.podbean.com/e/inspired-inse-full-year-2023-results-presentation-march-2024/

Liberum have issued a new 36 page Buy note this morning, with a 200p price target....

Here's their summary:

"Inspired Plc

The transition to a more diversified business is on track

The FY 23 results were slightly ahead of our estimates. We make four key points on the business: 1) Inspired has evolved from a Third-Party Intermediary (TPI) in the energy market to a technology-enabled services provider; 2) synergies between divisions help cross-selling and make Inspired uniquely qualified to help with both sides of the energy equation (cost + consumption); 3) underlying EBITDA is expected to double in five years (FY 22-27), indicating 24% upside to our FY 26 estimate; 4) the business is becoming less reliant on Energy Assurance profits, which helps increase earnings quality. In terms of valuation, a CY 24 P/E of 4.6x is attractive given the growth.

Key points

FY 23 results were slightly ahead.

Optimisation was the star performer.

Net debt (exc. leases) was flat at the H1 23 level of £49m.

Contingent consideration being paid.

Value drivers

Scope to grow in areas like Optimisation, Software and ESG.

These should accelerate growth and increase the valuation multiple.

A huge addressable market.

What market misses

Assurance

On excellent early volumes. Hopefully just the start of a big bounce for this seriously undervalued (imo) company.