New predictions, page-51

TheMorningstar Fair Value Estimate is just algorithm-generated nonsense. However,Evans and Partners initiated research coverage of LVT recently. Here’s part ofit:

Initiatingcoverage on LiveTiles
We initiate on LiveTileswith a Speculative Buy recommendation and a $0.34/sh valuation. LiveTiles is aSaaS platform which provides an easy-to-use tool that enables enterprises tocreate a digital workplace platform that replaces traditional custom-codedintranets.
We see the LiveTiles offering as a high quality product suite and a unique relationshipwith Microsoft gives them access to a large pipeline of customers. DigitalWorkplaces are an emerging thematic providing a large and growing addressablemarket. We believe there will be a shift in the near-term with enterprisestransitioning from custom-coded workplace systems towards software offeringslike LiveTiles.
LiveTiles has a unique sales strategy with over 200 sales partners, including largeconsulting firms such as Deloitte and Accenture as well as co-selling arrangementswith Microsoft. LiveTiles has a high quality customer base which includesglobal enterprises, presenting significant up-sell opportunities. We believe thisand the LiveTiles' Microsoft relationship gives the opportunity for scaling andmargin expansion.
Earnings and valuation
Our forecasts include5-year average revenue growth of 22% and EBITDA margins reaching 23% by 2025.LiveTiles is still loss making, and we forecast the company to reach operatingcash flow break even permanently by 2023.
Our thinking
LiveTiles provides a highquality product with a unique sales strategy. This includes a strong salesnetwork and deep relationship with Microsoft. It has already proven it can winlarge enterprise contracts with 2 major signings in the past year. We believethey will keep winning and growing which will lead the company to outperform vsexpectations.

Unfortunatelythe market is currently factoring in a very large “Karl Redenbach discount”,and there’s only one way to get rid of that….