Mabia upgrades Gigas target price to 8,25 euros

Gigas has a potential of 12.34% until 8,25 euros per share and a market capitalization of 35.66 millons euros, according to the latest Mabia’s investment research. This last update recognizes the company’s progress in the cloud services niche in different countries, as well as the results of corporate operations executed in 2018.

Throughout last year Gigas closed the acquisitions of SVT, a spanish cloud company, and Ability which had developed IaaS activities in Colombia. With the financial support of Inveready, through an issue of convertible bonds for 2.5 million euros, the company increased the number of subscribers, as well as revenue. Those acquisitions served also to consolidate its business model in Colombia, to grow the customers base and also incorporate a local datacentre.

As discussed in the investment research, Gigas has reached different milestones. The company has taken advantage of the characteristics of the market, in constant growth in recent years, as well as his model based on the users volume. Those advances allowed to consolidate the company’s business model and have positive net income for the first time.

Mabia highlights the growth potential of Gigas, given its historical advances and its internationalization process. Considering also its user base, which in the first quarter of 2019 totaled 3,836 users (divided into 3083 Cloud VPS users and 753 Cloud Datacenter users). Although not forgetting the advances that are making their competitors in the same market.

Since its incorporation on the Mercado Alternativo Bursátil (MAB), Gigas sales have increased gradually, until closing the first quarter of 2019 with 3.04 million euros of revenue and an EBITDA of 638,633 euros. Based on the financial information and market trends, Mabia has made a projection of the business plan and estimates that the company’s revenue could maintain the growth rate significantly in the coming years, and continue to improve in terms of revenue per user.

Gigas Investment Research – English Version