Procurri’s bumpy ride may smoothen out with more acquisitions

SINGAPORE (Nov 15): DBS Group Research is maintaining a “buy” call on Procurri with a target price of 56 cents, citing a potential acquisition in the works.

Analyst Sachin Mittal notes in a Friday report that Procurri is one of the few companies in the world that offer hardware resale and independent maintenance services, which is reflected in its 33% gross margins. This is further bolstered by 23% earnings compounded annual growth rate which could be aided by potential acquisitions to enhance its global footprint.

To recap, Procurri’s 9M16 earnings growth excluding one-offs was slower than expected at $5 million, below forecasts of $6.5 million due to revenue miss, notes Sachin.

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