Share Prices & Company Research

Market News

21 May 2021 | 10:46

Berenberg lowers target price on Blue Prism

(Sharecast News) - Analysts at Berenberg lowered their target price on software and services provider Blue Prism from 1,375.0p to 1,100.0p on Friday, stating recent events had given it cause to reflect once again on the key issues at the firm. Firstly, Berenberg noted that Blue Prism had again revised its growth expectations downwards in its first-half trading update and asked whether the "significant revision" to its growth expectations was simply a case of new conservatism at the company or evidence of competitive pressures.

"The revised guidance in the H1 trading update points towards decelerating revenue growth, but with a clearer path towards cashflow breakeven and eventually profitability. A portion of this decelerating growth can be explained by Covid-19, but for us it also raises questions about the RPA market, pricing, competition and Blue Prism's commercial strategy," said the analysts.

Next up, the German bank asked if the IPO of UiPath had renewed investors' focus on Blue Prism's competition and stated that both events posed "a number of difficult questions" for the company in terms of growth, product, sales strategy and the wider competitive environment.

"Although priced at a substantial discount to UiPath, Blue Prism must provide comfort on each of these points before we can become more positive," said Berenberg, which also reiterated its 'hold' rating on the stock.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 7th October 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.