Kape Technologies: Unveiling Kape
Edison | Jun 19, 2018 06:09AM ET
Kape Technologies PLC (LON:KAPE) has made solid progress in refining its product set and is now fully focused on the consumer cyber security segment. By leveraging its marketing platform to scale new products while also transitioning to a subscription model, we expect to see strong revenue growth and margin expansion translating to our forecast 16% three year CAGR in EPS. With $69.5m net cash, acquisitions should enhance this further. We believe the shares should be on a growth rating yet despite the recent performance, the 21.8x FY18 P/E is below peers. We see upside towards 157p.
Building scale in consumer cyber security
Having transitioned away from ad tech, Kape’s divisions are now fully aligned to focus on the online distribution of consumer cyber security software. By expanding the product range, both organically and through acquisition, honing the company’s expertise in online user acquisition and transitioning to a subscription-based model, Kape expects to increase the lifetime value of its customers, while at the same time improving the quality of its earnings.
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