On Friday, Deutsche Bank expressed a positive outlook on Cancom SE (COK:GR) shares, raising the price target to €43.00 from the previous €42.00, while maintaining a Buy rating on the stock. The adjustment comes ahead of the company's second-quarter earnings report, which is scheduled to be released on August 13, 2024.
Cancom SE is anticipated to report a 22% year-over-year increase in revenue for the second quarter of 2024, a growth partly attributed to the recent acquisition of K-Businesscom. This acquisition has been integrated into the company's financials since January 7, 2024, and is expected to contribute to the positive revenue trend.
The company has also signaled an encouraging development, noting a pick-up in demand starting from May 14, 2024. This mid-quarter boost in demand is a key factor underpinning the analyst's confidence in the company's performance.
Additionally, Cancom SE has announced a strategic move to cancel 1.67 million treasury shares, which represents 4.6% of the total shares outstanding. This action took effect on July 1, 2024, and is expected to have a favorable impact on the company's earnings per share (EPS). Deutsche Bank has subsequently increased its EPS estimates for Cancom SE for the fiscal years 2024 to 2026 by 5%.
Investors and market watchers are now looking forward to the company's detailed financial results in August to see if the company's performance aligns with the optimistic projections.
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