Following the integration of the group’s annual results, the FY18 EPS has been slightly pushed down. The transition from a hardware provider to a software developer continues to weigh negatively on profitability.

Our previous EPS forecasts (€0.16 for FY19, and €0.17 for FY20) were disconnected from the previous full-year results. Therefore, we have lowered our estimates to reflect the current issues better, which we believe will end in the medium term.

Amadeus IT Group and EdenRed were added to our peers’ valuation to reflect Keyware’s offers better.

While we have slightly downgraded the EBITDA forecasts for the next three years, our DCF valuation is unchanged. The transition phase should continue to impact negatively, but we are confident that it is a medium-term issue. Consequently, and to reflect the market growth potential, we have decided to increase our long-term growth for both sales and EBITDA by +1.5%.