CYBER1 - Double acquisition completed - Mangold Insight Analysis

Mangold is updating the cyber security company Cyber Security 1 ("CYBER1") following the third quarter. CYBER1's revenue increased to MEUR 11.3 (8.2), corresponding to a growth rate of 37.3 percent. Revenue was 2.7 percent lower than estimate for the quarter, which means that Mangold maintains the growth estimate for the fourth quarter. 

CYBER1 acquired the remaining 25 percent of CSSA and 50 percent of CSAD at the end of September, which means that CYBER1 owns both companies to 100 percent. The purchase price amounted to MEUR 2.172, and the companies had a combined turnover of MEUR 11.4 in 2021, as well as being EBITDA profitable. Mangold views the acquisitions positively as they are expected to contribute to growth and increase profitability for CYBER1. This means that the company is expected to be EBITDA profitable as early as 2023. 

Mangold reiterates the price target of EUR 0.040 per share. This corresponds to an upside of over 150 percent. The maintained price target is justified by the fact that the third quarter followed the previous estimate. Mangold maintains its assessment that CYBER1 will be EBITDA profitable in 2023 and grow at a high rate moving forward. It is driven by completed acquisitions, the underlying market demand, and the expansion of the Managed Services business area.

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