Edison Issues Update on SNP Schneider-Neureither & Partner (SHF)

SNP is acquiring BCC, one of the largest SAP partners in Central and Eastern Europe, for an undisclosed price. The deal broadens the group's customer base, widens its expertise in the areas of SAP service and cloud provisioning and brings onboard c 250 SAP and IT consultants who can be cross-trained in transformation projects. On our estimates, the deal is value creating and earnings enhancing, with our FY18e and FY19e EPS rising by c 19%. However, we have cut our FY17 EBIT forecast, which implies a 7.3% margin, or 9.7% before the €2.65m one-off items outlined in the Q1 results. Given SNP's strong market position in software-based transformation projects and assuming a sustained high level of activity, we believe the shares remain attractive on c 18x our FY19e earnings.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

The stock trades on c 41x our FY17e EPS, which falls to c 21x in FY18e and to c 18x in FY19e. Our discounted cash flow (DCF) valuation rises to €47.75/sh from €46.00, which is c 21% above the current share price. However, our model is based on conservative assumptions and takes no account of any additional acquisitions.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

http://www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:  

LinkedIn http://www.linkedin.com/company/edison-investment-research  
Twitter  http://www.twitter.com/Edison_Inv_Res  
YouTube  http://www.youtube.com/edisonitv  
Google+  https://plus.google.com/105425025202328783163/posts

For more information please contact:   
Richard Jeans
Edison Investment Research
+44-(0)20-3077-5700

Katherine Thompson
Edison Investment Research
+44-(0)20-3077-5730
[email protected]

SOURCE Edison Investment Research