Another steady week for EVS. Approximately 2% of shares trading hands. SP has been steady between 15-18.5c for just on a month now. The market appears happy to sit back and accumulate at these levels. 16c appears to be the middle ground. Not surprising given that it represents a multiple of 10x (c. 60m MC), which I believe is a little under fair value on current arr (c. 5.5-6m).
I think further announcements will push the SP north from here. We'll see a strong finish to FY19 (they may exceed their guidance for 6m arr) and I hope they will back this up by reaffirming FY20 guidance and providing some commentary around how they plan to meet it. Note that their July 2018 investor pres mentioned growing the ratio of channel to direct sales with a FY19 target of 15% and FY20 target of 30%. The sales team was also going to grow from 12 to 17 people and they were looking to reduce their lead time (historically 6 to 8 months).
Excited for what's to come. We might see trading under a 12-15x multiple in the near future.
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