Berenberg raises target price on Pinewood Technologies

(Sharecast News) - Analysts at Berenberg raised their target price on software firm Pinewood Technologies from 455.0p to 510.0p on Friday after the group's FY24 earnings came in ahead of consensus. Pinewood Technologies said in its trading update for the 11-month period to 31 December that it now expects FY24 adjusted pre-tax profits to be ahead of analyst expectations.

Additionally, it also announced a major new contract win with Global Auto Holdings, which has 155 franchise dealers across the UK, North America and Scandinavia, as well as a larger network of dealers.

"There are a few moving parts with respect to FY25 and FY26E forecasts. Pinewood has flagged that it expects the implementation of recently signed customers, to be weighted more towards FY26 than FY25. This leads to a shift of revenue and profits to the right. In addition, the first full year of annualised contribution from today's contract win will be in FY27E. As a result, we decrease our FY26E adjusted EPS forecast by c7% and increase our FY27E adjusted EPS by c9%," said the German bank, which has a 'buy' rating on the stock.

Berenberg also noted that Pinewood's shares were currently trading on an FY25 price-to-earnings ratio of roughly 35x.













Reporting by Iain Gilbert at Sharecast.com