RE: Excellent H1 update - looks good for beating forecasts26 Apr 2024 08:43
Singer Capital Markets have updated - they say Buy and have a 97p target price.
They forecast 6.76p EPS to this September, rising to 7.68p EPS and 8.61p EPS.
The £1m cash pile also rises to £2.6m and then £4.6m.
Since H1's EBITDA is already 53% of their forecasts, even before the recently RNS'd contract wins, it's highly likely imo that REAT will beat expectations this year.
Especially with over 85% recurring revenues and improving margins.
Singer conclude as follows:
"Contract win momentum continues The Company has continued its drive on new business, with three recently announced material contracts totalling over £1.3m of revenue p.a. In addition, it continues to be awarded numerous small and medium sized wins which highlights its cross-selling capability. The pipeline for the remainder of the year remains robust which provides the Board with confidence over full year expectations".