Centralnic Share Discussion Threads

[hsduk101] 17/1/2022 21:03

Good to hear that analysts believe that CentralNic are considering Acquisitions and organic growth for its business model.

Also 138p to 286p equates to 110% growth :)

[sev22] 17/1/2022 19:02

CentralNic shares rise higher, broker predicts bright future.

The stockbroker sees a price target of 286p, compared to current market price of 138p per share.

[sev22] 17/1/2022 14:47

CentralNic hails acceleration of growth in fourth quarter:

[diesel] 17/1/2022 13:58

Kind of surprised this is not motoring, I wouldn’t have thought there is much selling pressure, perhaps this is the start of another concerted move over the next few weeks.

[rivaldo] 17/1/2022 11:57

Nice summary on the respected Techmarketview:



"Monday 17 January 2022

CentralNic ahead of expectations for the full year

Full year trading update out this morning from Internet domain name and web services provider CentralNic, points towards strong growth across the board for the Group.

CentralNic’s focus has been to look to rapidly build scale through multiple acquisitions (see its latest here) and organic growth in areas that deliver high recurring revenue and high cash conversion. It is a strategy that continues to serve the company well as it matures as a business, with today’s update outlining expected full year revenues of $410m – an increase of c.70% from the previous financial year.

Acquisitions are also helping drive organic growth which is expected to increase year on year by 37%. Profitability is also moving rapidly in the right direction with adjusted EBITDA expected of around $45m – an increase of 47% from the previous financial year. Cash generation also increased to $55.6m from $28.7m, whilst net debt declined to $76m from $85m, notwithstanding the $19m spent on the acquisitions of Safebrands, Wando and NameAction.

CentralNic has had a good twelve months with results likely to be well above market expectations having already been revised up during the year. Full year results are out on 28th February when we will provide deeper analysis."

[rivaldo] 17/1/2022 08:10

Cheers SEV22, excellent - 330p will do nicely :o))

Finncap seem to have deemed this "Premium" research given it's an Initiation of coverage, so it's not yet on Research Tree or available to ordinary PIs on their own web site. You can just read the intro, which confirms:

"CentralNic - Strong, organic growth from a robust, marketplace platform

We initiate coverage of CentralNic with a target price of 330p and a Buy recommendation. The investment case is focused upon CentralNic capitalising on the complementary opportunity for its Online Presence and Online Marketing divisions (c40% and c60% of FY21E revenue respectively), through both strong organic and inorganic growth. Its Online Presence division is one of the largest global distributors of domain names and value-added services, and provides a robust foundation for the group as it

Date:17 Jan 22

Analyst:Michael Hill
Pages:31 pages"

[diesel] 17/1/2022 07:58

That’s hell of an update, ready for fireworks!

[sev22] 17/1/2022 07:58

The Broker 'finnCap Group' have initiated coverage with a buy recommendation and a price target of 330.00p.

[rivaldo] 17/1/2022 07:12

RNS - trading ahead of expectations yet again....around 5% ahead of forecasts which have already been upgraded multiple times.

Plus debt is heavily reduced despite the acquisitions, on the back of cash convesrion "well in excess of 100%" due to all those lovely annual subscriptions paid in advance.

This should further accelerate the re-rating towards broker targets of 230p-250p:

[diesel] 12/1/2022 14:05

The chart seems to be repeating a pattern seen this time last year, if so maybe a bit of consolidation before the next steady rise.

[sphere25] 12/1/2022 13:51

Nibbling away on this lurch down.

Hard to say where the exact bottom is but there is strong demand appearing at 120p today (and yesterday, plenty of book watching yesterday) and around that 125p mark as well today.

So a possible floor around these levels to rebuild from.

All imo
DYOR

[rivaldo] 12/1/2022 13:49

Berenberg yesterday reiterated their Buy and 230p target price (this was increased from 220p in late November - can't remember if that's been posted before):

[rivaldo] 11/1/2022 15:33

Bargain time here. The forecast is for 12.24c EPS this year. At $1.35 that's 9.07p EPS, which at 124p is a P/E of just 13.7.....

[robsy2] 11/1/2022 12:55

I have bought some more. Maybe people are worried about the price of the tech stocks, fair enough, but this is not a heavily overpriced stock.

[diesel] 11/1/2022 12:33

I cannot see this drifting lower and lower, there is a wealth of broker and pundit reviews that suggest the target share price should be up to double current levels. Weakness will spook some and be seen as buying opportunities by others.

[doobz] 11/1/2022 11:51

Must have gotten hit with the Tech index spooking yesterday (which fully recovered by end of play)
Just have to hope this doesn’t start the fear selling cycle driving it lower and lower against reason. I’m a holder regardless but seen a
Lot of very good companies sell lower and lower for weeks on no news or volume.

[cravencottage] 10/1/2022 18:24

Hmm

Sounds like market manipulation.

[earwacks] 10/1/2022 17:54

In the event of no news to contradict the recent stunning updates I would say it is a case of the baby out with the bathwater.The nasdaq has the jitters about the possibility of four rate rises this year, but still likely to be under .8% and only slightly above the 7 year average. There was a large Sl sale trade this morning for about 250,000 similar to one last week, if not the same one published again. previous to that there were some very large buys pushing the share price up to £1.50. I'm highly suspicious of the way this has been traded, maybe trying to shake a few out because it certainly doesn't reflect the direction of the business, its value or the share buying. Relatively few trades pushed the share price down £1.30 this afternoon. All in my imagination of course!

[cravencottage] 10/1/2022 17:02

Is it just due to the Nasdaq selloff or is there anything sinister about today's demisal of SP?