Top IT companies on Warsaw Stock Exchange get closer look

Technology companies have experienced strong gains in share prices, and analysts are revising valuations upward on strong results.

We are already at the end of publishing financial statements for the first quarter and it can be clearly stated that the beginning of the year was successful for technology companies, and the management boards are optimistic about the coming quarters. It is justified in the order book for 2021. Positive news prompts analysts to revise company valuations.

Large companies dominate among the favorites. In its report from May 27, Haitong Bank raised the target price of Comarch shares, sustaining the “buy” recommendation. It also raised its EBITDA estimates for 2021-2023 due to Comarch’s better than expected gross margin and acceleration in the dynamics of the order portfolio growth. Analysts, however, also point to the challenges related to the proposals concerning the Polish Order, which may increase the wage pressure among experienced IT specialists The potential wage pressure for Comarch is estimated by analysts at 3-4 percentage points above the current 5 percent.

Positive recommendations are also collected by the largest IT company in the country, i.e. Asseco Poland. Its order backlog is 14 percent. higher than last year, and the management board believes that the margins in the coming quarters should remain at a relatively high level. The upward potential of the current valuation of shares is seen, among others, by DM BOŚ. According to him, in 2021 the consolidated net profit of Asseco Poland (calculated according to IFRS) will amount to PLN 411 million, with revenues exceeding PLN 13 billion. Positive recommendations of analysts, despite the impressive increase in valuation in the last several months, also have LiveChat. These three companies – i.e. Asseco, Comarch and LiveChat – weigh the most in the WIG-IT portfolio. In total, they have over 68 percent. shares.

However, it is also worth taking a look at smaller companies, because there are also many interesting entities there. There is Sygnity, which is looking for an investor. Atende with a still attractive price-profit ratio. There are IT equipment distributors – Asbis and AB – who positively surprise with their results. There is also R22, which is believed in, among others Trigon DM. Its valuation, which hit the market on Friday, shows that the company’s stock is still around 20%. growth potential.

Trigon also believes in Comp, whose business is developing in an interesting way, and which has remained in the shadow of other tech stars in recent years. Analysts note, among others for this year’s dividend recommended by Compa’s management board, i.e. PLN 3 per share. – We receive the information positively. The management board proposes distribution just after the completion of the third stage of the current online fiscalisation process. The dividend would be paid for the first time since 2015, when the payment was PLN 1.06 per share, while in other periods share repurchase was preferred, reminds Dominik Niszcz, Trigon DM expert.


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