US/UK/Canada

Share

Pick a time period -
Tags ( Active)

DNB Markets - Verisec: Changing its stripes

Verisec continues to demonstrate early success in building its Freja eID ecosystem, which is set to benefit from continued digitalisation tailwinds accelerated by Covid-19 and an increasingly eID-focused organisation. However, we await further signs that it can successfully monetise its ecosystem into paying customers, and have thus cut our 2020–2022e sales by 24%, and our fair value to SEK60–110 (70–110).Q2 review. Sales of SEK6m beat our forecast of SEK4m (28% sales fall YOY), mainly related to its fulfilment services, while the EBIT loss of SEK10m was 41% higher than we expected. With a

DNB Markets - Verisec: Going through changes

Verisec’s Q1 report was disappointing in our view, but we like that the divestment of non-core businesses lessens the financial risk and increases the margin and growth profile. We expect the stock to re-rate on greater Freja eID visibility in 2020, as we expect accelerated cloud security adoption driven by Covid-19. We have cut our fair value to SEK70–110 (80–120).Freja eID tailwinds from remote-working environment, as organisations place increased focus on secure cloud processes (log-in, signing, and approval), as shown by the ~180 relying parties Freja eID has reached (250%+ growth YOY).

DNB Markets - Verisec: Freja eID momentum building up...

… as Covid-19 is forcing organisations to work remotely, resulting in a spike in demand for secure digital processes. Still, we are concerned about delayed sales cycles for its legacy security products, hence we have cut our 2020–2022e sales forecasts by ~10%, which cuts our fair value to SEK80–120 (100–140).Potential Covid-19 implications should work both ways for Verisec in our view. On the negative side, the business model is dependent on volumes, which should come down in a worsening economic climate, while sales cycles are likely to be delayed. Still, we believe that demand for its

DNB Markets - Verisec: Freja eID - worth the wait

Quarterly volatility in the legacy business remains high, and while 2019 sales growth of 31% was a clear step forward, Q4 disappointed. With recent impressive ‘relying parties’ announcements, we expect Verisec’s Freja eID offering to become better reflected in the share price. We have lowered our fair value to SEK100–140 (110–150), but this still suggests an attractive investment opportunity in our view.Q4 takeaways. Q4 sales growth of 1% YOY was below our 24% expectation, with sales of SEK20m (18% below our estimate) as we had underestimated the quarterly lumpiness of the sales cycles in

Redeye - The growth story continues for Verisec

Verisec is positioned as a security software player within digital identity and information security in the Nordics, and is currently expanding its business in EMEA. The company is well financed (40 MSEK in cash) and has the prerequisites for fulfilling its expansion plans and product development, with an aim to achieve 200 MSEK in sales within a five-year period. Verisec is led by the former Protect Data business team, and they retain significant ownership. The company will likely enjoy significant growth momentum in the coming years within the banking and public sectors. The

There are no items matching the current filter
There are no more items matching the current filter
Back to top

Subscribe