RE: New 1600p Peel Hunt target price8 Jun 2016 07:49
More detail on that upgrade to 1600p....
http ://www.proactiveinvestors.co.uk/companies/news/126828/magic-lies-beyond-merlin-for-accesso-says-peel-hunt-126828.html
"Magic lies beyond Merlin for Accesso, says Peel Hunt
12:49 07 Jun 2016
Broker Peel Hunt provides a comprehensive look at accesso today
Expanding virtual queue firm Accesso Technology Group PLC (LON:ACSO) is handed a bullish ticket today from broker Peel Hunt, which has pumped up its target price on the stock to 1,600p from 1,280p (current price: 1,308p).
The broker reckons the current share price only factors in upside potential from its deal with entertainment giant Merlin Entertainments PLC (LON:MERL) but there are many others opportunities which give cause for optimism.
These provide upside of up to $17.2mln in 2017, or a 16% increase to revenue, which in turn would equate to earnings upside of up to 60%, the broker reckons.
Global theme park market of 1bn visitors
Major among these is that the potential global theme park market is 1bn visitors per year and if accesso was to work with all the operators with whom it does not yet have a relationship, excluding Disney, this would be a nine-fold increase in its reach, notes analyst Paraag Amin.
"We conservatively estimate a 5% revenue uplift in 2017 and 7.5% in 2018, as we anticipate accesso will gain share as its solutions become increasingly desired by smaller operators and new, larger parks come online," said the analyst.
Accesso's technology allows visitors at theme parks to step out of line and be told when their chosen ride or attraction is ready. Its main product is called LoQueue, which has been widely adopted.
It also owns the accesso Passport ticketing suite, where customers can shop OnSite. OnLine, while Siriusware is another of its ticketing and admissions systems.
Another factor the broker foresees as becoming the norm is "fully automated queue free theme parks in the future".
On that basis, it estimates a 1% revenue uplift in 2017 and 2% in 2018, as "we anticipate queue-less theme parks (or at least a virtual queueing solution for the most popular attractions in parks) to be introduced in 2017".
In addition, Amin reckons that around half of accesso’s current parks are relatively mature, namely that queue management (QM) is a relatively new product, generating around 70% of revenue, whilst the remainder are still maturing.
"If these immature parks build up to the same eventual level as the mature parks, accesso could see up to a 30% revenue uplift," he said.
The analyst added that the group's current customers using QM in at least one venue serve over 100mln visitors per year, so the group could see close to a three-fold increase in QM revenue by rolling it out in all the remaining parks
Rapid uptake of smartphones
On the ticketing side of the business, the broker notes with the rapid uptake of new smartphones, ther