New York, NY–(November 18, 2015)– SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on Comptel Corporation (OMX Helsinki: CTL1V) with a Price Target of €2.42.
The report is available here: Comptel Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Located in Helsinki, Finland, Comptel is a global leader in developing and deploying software and services that enable high speed, intelligent, and secure mobile applications. Led by its industry leading operating support system (OSS) platform, which includes service orchestration and intelligent data capabilities. Comptel’s technology processes over 500 terabytes of data daily and touches approximately 20% of the world’s mobile billing / usage data. Comptel has a well-established presence processing large scale mobile data securely in the global communications industry, with approximately 300 digital service and communications providers in 90 countries across the globe, reaching over 1.2 billion people worldwide.
“We see Comptel as emerging from a turnaround situation to an attractive growth story, with key catalysts including new software-based products and geographic expansion. We see the company’s breadth of experience and Comptel’s heritage in telecom software as a key strategic assets,” stated Ajay Tandon, CEO of SeeThruEquity. “We are initiating coverage with a 12-month price target of €2.42 per share.”
Additional highlights from the report are as follows:
Established communications software player with a global footprint
Comptel has been pursuing growth through new products and geographic expansion. Core to these pursuits is its deep heritage in telecom software and well-established presence in Europe, which accounted for 41% of sales in 2014. In addition to Europe, Comptel also has offices in the Americas, Africa and the Middle East, as well as the Asia Pacific region. With approximately 700 employees, Comptel has invested significant research and development to ensure that it has industry leading software and service offerings in the digital and communications market. The company’s core software categories are Service Orchestration – which includes the company’s fast-growing FlowOne fulfilment solution and Intelligent Data, which helps network operators better monetize and understand large sets of customer data in real time. The company targets large and mid-sized network operators globally with a long history of working with top names in the industry – representative customers include T-Mobile, Telefonica, Vodafone, PCCW and Bharti Airtel, among others. We see several catalysts for Comptel over the next year as these products gain traction and as the company penetrates new key markets, such as Japan, the US, and Indonesia, through partnerships with some of the industry’s leading system integrators and network equipment providers.
Strong management team
Comptel has a strong leadership team with top executives from many of the top innovators in the mobile telecommunications market, including Nokia, Ericsson, Siemens and Tellabs, among others. Comptel is led by CEO Juhani Hintikka, who arrived in 2011 and has put in place a new vision for the company to drive growth and margin expansion. The strategy has been focused on building a new suite of software solutions and services targeting global tier 1 customers that leverages Comptel’s deep and rich history in the communications technology industry while they address the increasing software component of converged mobile and fixed networks. Hintikka appears to have had initial success with the strategy, as the company is on pace for double-digit sales growth in 2015, after growing sales by 3.6% in 2014. He has laid out an interim goal of achieving double-digit organic topline growth and 15% operating margins. Hintikka has also made nice progress rationalizing costs, with the successful implementation of serval rounds of restructuring that have laid the foundation for cost savings and margin optimization while aligning costs with the deployment and growth of a software and services based market strategy. We see the breadth and varied experience of management as a key asset for a company targeting tier 1 carriers as its customers, and also believe the strong leadership team has played a key role in Comptel’s ability to strike partnerships with leading companies such as Alcatel-Lucent, Nokia, Hitachi, IBM, and Tech Mahindra.
Initiate coverage with a price target of €2.42
Our analysis indicates a fair value estimate of €2.42 per share. We view Comptel as an attractive company in the technology industry with significant opportunities for growth and margin expansion. If achieved, the price target of €2.42 represents potential upside of 65.8% from the recent price of €1.46.
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About Comptel Corporation
Life is digital moments. Comptel perfects these by transforming how you serve, meet and respond to the needs of “Generation Cloud” customers. Our solutions allow you to innovate rich communications services instantly, master the orchestration of service and order flows, capture data-in-motion and refine your decision-making. We apply intelligence to reduce friction in your business.
Comptel has enabled the delivery of digital and communications services to more than 1 billion people. Every day, we care for more than 20% of all mobile usage data. Nearly 300 service providers across 90 countries have trusted us to perfect customers’ digital moments. For more information, visit www.comptel.com.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.