Canaccord Genuity raises target price on SmartSpace

(Sharecast News) - Analysts at Canaccord Genuity hiked their target price on software firm SmartSpace from 140.0p to 160.0p on Friday after the company said it had built on its strong first-half software-as-a-service momentum.
Canaccord Genuity said SmartSpace's update had provided "confidence" on the group's trading performance and its two high-growth SaaS workspace management platforms, SwipedOn and Space Connect.

"When we last heard from the company on 25 October 2021 we were told that ARR as of 30 September 2021 was £4.1m (£3.5m at SO and £0.5m at SC). Since then the emergence of the Omicron variant has driven some form of lockdown and a focus on working from home across a number of geographies, so it is reassuring that the group expects to report FY results to 31 January 2022 in line with market expectations," said Canaccord.

The Canadian bank stated that to this point, it had been told that the group's broad geographic spread has helped de-risk the impact of Covid-19, with its Australia and New Zealand operations being "particularly strong" and the US holding up well.

Canaccord, which stood by its 'buy' rating on the stock, also said it understands that all key SaaS metrics remained "firmly on track", suggesting that the strong trading momentum at SO and SC in the first half had continued through the second and that the group was on track to meet annual recurring revenue expectation of £4.7m for the 2022 trading year.