Keyware

We have upgraded our earnings forecast for FY18 due to the transition phase going well. Although the results have been affected by higher exceptional charges (significant terminal obsolescences and payment defaults by customers) in H1 18, we expect growth in operating profitability for the full FY18.

Our DCF valuation is supported by the increase in our forecasts in the medium to long term. Indeed, we believe that the strategy to become more of a software group will be profitable. The company, currently in the middle of its transition phase, is facing significant costs linked to its two recent acquisitions (Magellan and EasyOrder) but we expect that this will be largely compensated by the software sales growth in the following years.