Expert System: Investing In The International Opportunity

 | Jun 30, 2016 04:56AM ET

Expert System's (MI:EXSY) 2015 acquisition of TEMIS has put it in a strong position to leverage its award-winning cognitive technology across a much larger global footprint in the text analytics market (expected to reach $6.5bn by 2020). It has extended its strategic partnerships, including becoming a Google (NASDAQ:GOOGL) Premier Technology Partner and developing its relationships with system integrators. Its impressive client base includes Eli Lilly and Company (NYSE:LLY), Thomson Reuters Corporation (TO:TRI), Unicredit (DE:CRIH), Shell (LON:RDSa), and a number of national security agencies. Our base case DCF suggests a share valuation of €2.78, while recent fund-raising deals in the sector suggest the potential for a higher value.