Talkpool: Growth story still continues2017-12-05 10:25, Edited at: 2017-12-05 10:32
N.B. This republication is an update of our research report from 14 November. We have added a short section with our reflections on the Q3 2017 report and our updated DCF-valuation indicates a fair value range of SEK 29-55 with a Base-case of SEK 44 per share.
• Talkpool is a profitable Telecommunication Network Service provider that has major contracts with Huawei, Deutsche Telekom, Digicel and Telenor. With the latest acquisition of LCC, Talkpool will be able to rapidly increase both revenue and margins.
• During Q4, Talkpool AG strengthened their position within IoT as they became the majority shareholder (56%) of the Internet of Things company Talkpool AB. We believe that the Company is well positioned in the ongoing transformation towards IoT-solutions.
• After an impressive third quarter we chose to look into our base case valuation of Talkpool. We raise our base case based on the acquisition of IoT company Talkpool AB, strong gross margin performance in the core business and because the concerns regarding the framework agreements seem to be exaggerated.