Eagle Eye Share Price (EYE)

Eagle Eye Solutions

Software and Services

Growth vibrations

Canaccord Genuity view

CMD lays out multiple growth avenues on pathway to £10/share

Our initiation detailed the many growth drivers for EagleEye and last week's CMD put more 'meat on the bone', raising our confidence in management's mid-term £100m revenue & £30m EBITDA targets.

Loyal customers are the best customers: Loyalty programs are very profitable for retailers (7:1 ROI) as they are often the main reason consumers stay with a brand and spend more. EagleEye's AI-powered 'hyperpersonalisation' SaaS platform is a key differentiator as it generates & executes personalised/individualised promotion data & campaigns, a far superior approach to the current industry standard of segmenting consumers into broad personas or 'buckets'. Hyperpersonalisation creates much more relevance and value for the retailer and has generated £100s of millions in incremental sales for customers in the UK & France.

Going after a £3.3bn SAM: North America makes up c.50% of the global TAM with many regional retail chains still on basic legacy POS-based loyalty platforms. EagleEye has identified >700 target accounts with its current 14 customers implying a modest 2% share in NA. There are another ~600 targets across EMEA & APAC. In addition to this large new logo pool, upselling its existing top 35 customers all major features could almost double its current ARR of £42m. All told, EagleEye estimates a serviceable addressable market/SAM of £1.9bn, expanding to £3.3bn when including partnerships, new sectors & geographies.

We reiterate Buy & 660p target - the shares' 2.5x CY26E EV/Sales and 2.7x EV/ ARR multiples in our view undervalue the business given accelerating growth, long-term upside to £10/share and recent industry M&A at >12x ARR.

OEM partnership could be massive

In addition to the large direct sales 'land&expand' opportunity, EagleEye's OEM/whitelabel channel could become another material growth engine. We recap that EagleEye's AIR is the exclusive loyalty engine for (we believe) SAP’s new cloud-based loyalty solution. This is replacing its on-premise CRM 7 module and natively integrates with SAP's S/4HANA Private Cloud ERP & Business Suite ERP systems. We believe SAP has several thousand enterprise customers using its on-prem loyalty solution, creating a very large upsell pond for it to fish in. Depending on the focus & success of SAP's conversion efforts, Eagle Eye's target of adding 4-8 new OEM logos per year could be conservative. Based on ~£1m average ARR expected by Eagle Eye from its first two wins, even very modest conversion of SAP's installed base could contribute significant double-digit ARR growth for EagleEye.

Exciting roadmap to agentic AI

Several customer testimonials praised the flexibility and feature breadth of Eagle Eye's platform, and we believe a key success factor and differentiator is its hyperpersonalisation algorithms finessed over the last 10 ye

Good analysis. Thanks for sharing.

In depth analysis and DCF valuation of Eagle Eye:

https://open.substack.com/pub/salvacapital/p/eagle-eye-solutions-eye?r=4zaiay

Typo

Too quick , 8 not 3mths ( summer 2025)

£2.00 to £3.45 a decent return, those share buy backs really had a positive impact

Reached my target price after buying under £2.00 3mths ago

Good luck all in