Blue Prism Group (PRSM)

Sector:

IT Services

Index:

FTSE AIM 50

1,182.00p
   
  • Change Today:
      32.00p
  • 52 Week High: 1,886.00
  • 52 Week Low: 769.00
  • Currency: UK Pounds
  • Shares Issued: 96.89m
  • Volume: 482,121
  • Market Cap: £1,145.19m
  • RiskGrade: 282

Berenberg says concerns regarding Blue Prism 'keep compounding'

By Iain Gilbert

Date: Friday 18 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg reiterated their 'hold' rating on software firm Blue Prism on Friday but cautioned that concerns around the stock just kept compounding.
Berenberg stated that in its view, Blue Prism's first-half results were "weak", noting that while the headline figures were

already known and the company had shown progress on profitability, none of its concerns about sales trends, competition, costs and product had abated.

"In fact, they have increased," said the analysts. "We reduce our FY21 revenue estimate and now forecast the company to be slightly below its current guidance."

Bernberg said Blue Prism's revised guidance pointed towards decelerating revenue growth, but with a clearer path towards cashflow breakeven and eventually profitability. The analysts admitted that a portion of this decelerating growth could be explained by Covid-19, but said it also raised questions about the RPA market, pricing, competition and Blue Prism's commercial strategy.

The German bank, which kept its 1,100.0p target price on the stock in place, cautioned that while investors may be attracted by the company's "relative valuation", given the fundamentals, it believes they should look elsewhere.

"The market reacted positively to the company's EBITDA loss performance, as EBITDA losses were only £8.0m during the half despite a significant increase in R&D spending. This implies significant headroom over the company's guidance of £25.00m in EBITDA losses for the full year. However, we feel the cost savings are relatively low quality. Blue Prism has experienced a near-complete reduction in travel and entertainment costs, which represented as much a £17.0m in 2019. We believe a significant portion of these costs will return."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

PRSM Market Data

Currency UK Pounds
Share Price 1,182.00p
Change Today 32.00p
% Change 2.78 %
52 Week High 1,886.00
52 Week Low 769.00
Volume 482,121
Shares Issued 96.89m
Market Cap £1,145.19m
RiskGrade 282

PRSM Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
53.64% below the market average53.64% below the market average53.64% below the market average53.64% below the market average53.64% below the market average
52.29% below the sector average52.29% below the sector average52.29% below the sector average52.29% below the sector average52.29% below the sector average
Income Not Available
Growth
59.74% above the market average59.74% above the market average59.74% above the market average59.74% above the market average59.74% above the market average
77.32% above the sector average77.32% above the sector average77.32% above the sector average77.32% above the sector average77.32% above the sector average

What The Brokers Say

Strong Buy 5
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 7
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PRSM Dividends

No dividends found

Trades for 24-Sep-2021

Time Volume / Share Price
17:09 2,900 @ 1,182.00p
16:43 25,883 @ 1,183.94p
16:43 25,884 @ 1,183.94p
16:35 50,268 @ 1,182.00p
16:29 34 @ 1,182.00p

PRSM Key Personnel

CFO Ijoma Maluza

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