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Prices & Quotes - UK Markets - Avast (AVST)

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Share Price:
Up 488.70p
Change Today:
1.40p
Market Cap:
5,034m
Sector:
Software & Computer Services

Canaccord initiates coverage of Avast at 'buy'

By Abigail Townsend

Date: Wednesday 21 Apr 2021

LONDON (ShareCast) - (Sharecast News) - Canaccord Genuity has initiated coverage of blue chip security specialist Avast with a 'buy' recommendation.
The tech firm, which specialises in protection, privacy and performance software, debuted on the London market in 2018. On Tuesday, it revealed a forecast-beating 10.4% increase in first-quarter revenues, to $237m, and said it now expected full-year revenues to grow up the upper end of previous guidance, of between 6% and 8%.

In a note published on Wednesday, Canaccord said: "Most of the full-year 2021 sales upgrade resulted from good first-quarter trading. Full-year 2021 billings guidance remains at the low end of revenue guidance and weighted towards the second half, due to the positive impact of the first lockdown in the second quarter of 2020 and therefore a tough comparable."

It continued: "Over 80% of group revenues are subscription agreements, which are typically paid in full upfront. The group enjoys the highest adjusted earnings before interest and tax margins in the UK IT sector, at over 50%, and this is reflected in the free cash generation at around 40 cents per share."

However, it added that competition remained "considerable", including from rivals such as McAfee, Symantec and Sophos.

Canaccord, which has a price target of 550.0p on the stock, concluded: "Our target implies a PE of around 21x for the 2021 full-year, versus the UK IT sector at around 33x. Avast has best-in-sector adjusted EBIT margins, versus the sector at around 14%, current free cash flow of 6% versus sector under 3%, and high recurring revenues (sector around 55%).

"Our valuation discount to the sector reflects Avast's weaker top line forecast sales compound annual growth rate of around 6%, versus the sector at 10%, and existing strong competitive pressures."

As at 1315 GMT, shares in Avast were off 1% at 474.2p.

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

 

Avast Market Data

Currency UK Pounds
Price 488.70p
Change Today 1.40p
52 Week High 600.00p
52 Week Low 420.00p
Volume 136,860
Shares Issued 1,030.01m
Market Cap 5,034m

Performance Indicators

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Income
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P/E
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Dividend Yield
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EPS Growth
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Operating Margin
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What The Brokers Say

Strong Buy 12
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 14
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Avast Dividends

  Latest Previous
  Final Interim
Ex-Div 13-May-21 10-Sep-20
Paid 18-Jun-21 16-Oct-20
Amount 11.20¢ 4.80¢

Trades for 15-Jun-2021

Time Volume / Share Price
09:46 395 @ 488.70p
09:45 19 @ 488.70p
09:44 356 @ 488.80p
09:44 373 @ 488.90p
09:44 27 @ 489.30p

Avast Key Personnel

Chair John Schwarz
CFO Philip Marshall
CEO Ondrej Vlcek