Sandpiper Digital Payments: Promising Future Market
According to SMC-Research, Sandpiper’s half-year results 2018 still show the after-effects of the restructuring measures undertaken. While the sales, mainly to consolidation effects, have declined significantly, the comparable basis has shiftet only slightly below the previous year’s figures. The cost structures have significantly improved, even if the operating result was still negative.
With the restructuring and focusing, a good basis has been created to grow steadily and increase margins in the future. According to the analysts, the group has now increasingly leveraged synergies and jointly addressed the promising Smart City market of the future. The increasing digitalization of municipalities in areas such as mobility, access control, and payment processing has created a high demand, with Sandpiper enabling to combine the products of the various subsidiaries into innovative system solutions. Therefore, the reaserach house is assuming a report of growing orders in this area.
As of next year, SMC-Research expects a significant organic growth. Analysts estimate a break-even at EBIT level for the year of 2019. From the perspective of the research team, the expansion of revenues with highly scalable platforms should lead to a significant increase in the margin. Analysts have depicted this in a model and calculated a new price target of EUR 0.23 per share. On the basis of an unchanged high price potential, the “speculative buy” judgement remains, whereby the speculative character is due to the above-average forecast risk.
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