Lots of positive noise18 Jun 2021 08:55
Blue Prism trading at a ‘huge discount’, says Shore Capital
Shares in software group Blue Prism (PRSM) continue to suffer despite the successful flotation of highly-rated peer UiPath on the Nasdaq, where Blue Prism may also list, says Shore Capital.
Analyst Martin O’Sullivan retained his ‘buy’ recommendation on the stock, which is considering a secondary listing on Wall Street as UK investors ‘don’t understand tech’.
Blue Prism shares have lost 49% year-to-date versus a 13% rise in the FTSE All-Share, despite UiPath listing in the US with a high rating and ‘the continued robust growth evident in the intelligent automation market’, said O’Sullivan.
The analyst said Blue Prism continues to trade at a ‘huge discount’ to UiPath. He added that while a positive update – including 24% growth in revenue over the year – ‘doesn’t appear to move the needle that much, there are some positive signs for investors’ in the figures as well as the proposed secondary Nasdaq listing, ‘which may well allow a more positive market appraisal to begin to emerge’.