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Investing.com - Canaccord Genuity initiated coverage on Alfa Financial Software (ETR:SOWGn) Plc. (LON:ALFA) with a Buy rating and a price target of GBP2.82 on Thursday.
The research firm cited Alfa’s accelerating customer wins, expanding cloud adoption, and proven ability to deliver at scale as key factors that are not fully reflected in the company’s current valuation of approximately 4x EV/Sales two years out.
Canaccord Genuity noted that Alfa’s growth appears to be at an inflection point, with acceleration in forecasts supported by £221 million of contracted revenue backlog.
The firm believes sustained double-digit growth and margin stability can drive a re-rating towards premium vertical SaaS multiples exceeding 6x EV/Sales, offering upside potential from both earnings acceleration and multiple expansion.
Canaccord also highlighted downside protection for Alfa stock from a sticky customer base, net cash position, and strong free cash flow generation.
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