PAYGROUP DOUBLES REVENUE H1 FY21, page-7

Canaccord Genuity rates ((PYG)) as Buy (1) –

PayGroup has acquired TalentOz, a small cloud-based human capital management (HCM) and payroll software business servicing clients largely in Malaysia and India. The cost of acquisition was -$1.2m in a primarily scrip-based deal.

TalentOz is complementary technology that builds out the HCM side of PayGroup's offering, according to Canaccord Genuity.

Broadening the services the company can provide across HCM and payroll enhances the company's ability to provide a viable, cost-effective solution for SME's and mid-size multinational corporations across Asia, and should drive some upsell, states the analyst.

The Buy rating is maintained. The target price is increased to $1.08 from $1.05.

This report was published on July 15, 2020.

Target price is $1.08 Current Price is $0.72 Difference: $0.36
If PYG meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY20:
Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.

Canaccord Genuity forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

This public report is available on FNArena's web site