Edison issues initiation on 1Spatial

RNS Number : 5089X

1Spatial Plc

06 May 2016

 

London, UK, 6 May 2016

Edison issues initiation on 1Spatial

1Spatial has significant expertise and IP in the field of geospatial data, supplying some of the largest and sophisticated users of geospatial data globally. Historically, client engagements involved creating bespoke solutions, but management is now transitioning the business to drive repeatable product sales. Investment in executing this transformation significantly compresses earnings over our forecast period, but should create a platform to deliver scalable, operationally geared growth. Recent progress in the US and partnerships with leading mapping players Esri and HERE strengthen the company's prospects for achieving this. We believe the current share price does not reflect this potential.

Our forecasts reflect the fact that investment in transforming the business model is negatively affecting FY17 EPS by at least 35%. Adjusting for this, we believe the valuation is substantially underpinned by the established businesses and that the company is establishing a strong platform to scale. Our DCF analysis suggests that penetrating a mere 0.22% of the global GIS user base would justify a 10p share price. We believe that positive newsflow regarding GIS partner customer uptake or new enterprise database partners are key catalysts for upside.

Click here to view the full report

All reports published by Edison are available to download free of charge from its website: www.edisoninvestmentresearch.com

About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 400 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn	www.linkedin.com/company/edison-investment-research
Twitter	www.twitter.com/Edison_Inv_Res
YouTube	www.youtube.com/edisonitv
Google+	https://plus.google.com/105425025202328783163/posts

 

END

 

 

NRAUGUGGAUPQGUQ