FINEOS CORPORATION HOLDINGS PLC (FCL)
Share Price Analysis and Chart

14/11/2024

1

Outperform

$2.11

3.94%

Fineos Corp's investor day detailed the company's position as a leading software provider to the Life sector, Macquarie explains, including confirmation of robust cash flows to support organic growth with M&A possibilities.

Management outlined three-year and five-year targets. Subscription fees are targeted to reach over 65% of total revenue, with a 75% gross margin, a 25% EBITDA margin, and 30% of revenue allocated to R&D within three years.

For five years, the aim is for subscription fees to account for over 75% of revenue, a 75% gross margin, a 40% EBITDA margin, and 25% of revenue allocated to R&D.

Macquarie highlighted the medium-term targets are above the broker's forecasts, with the opportunity to modernise Life Insurance clients viewed as "material."

No change to the $2.11 target price and Outperform rating

FORECAST
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -5.08 cents.
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -2.95 cents.

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09/09/2024

3

Neutral

$1.65

-18.72%

Goldman Sachs lowers its target for Fineos Corp by -13% to $1.65 following 1H results due to higher operating expense forecasts over FY24-26.

As management's new FY24 guidance suggests a weaker Subscription revenue outlook, the broker reduces its Subscription valuation multiple, which also negatively impacts the target price.

The Neutral rating is unchanged.

FORECAST
Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -0.05 cents.
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -0.07 cents.