Stifel Nicolaus analyst Valentin Paul Jahan maintained a Buy rating on SES imagotag (0OA4 – Research Report) today and set a price target of €215.00.
Valentin Paul Jahan has given his Buy rating due to a combination of factors that highlight the strong growth potential of SES imagotag. The company is positioned as a leader in the Digital Shelf Label market, and there is a significant opportunity for growth as the market is currently under-penetrated. With only about 10% penetration globally, SES imagotag stands to capture a substantial revenue opportunity before the market matures.
Moreover, the company’s strategic shift towards providing digital solutions for retailers, beyond just being a DSL vendor, is expected to accelerate growth. This diversification strategy could lead to significant service revenue by 2030. Additionally, the company’s strong backlog, including a major contract with Walmart US, provides visibility and confidence in future revenue streams. The anticipated earnings growth and favorable market conditions further support the Buy rating, with the potential for the stock price to double by 2030.
In another report released yesterday, Berenberg Bank also maintained a Buy rating on the stock with a €228.00 price target.