Alantra spots up to 40% upside potential for LLYC's shares

MADRID, July 3, 2023 /PRNewswire/ -- LLYC (BME: LLYC). The Spanish-based financial advisory and asset management firm Alantra will now bring over 30 years of experience to its coverage of LLYC (LLYC MC) in a sponsored research format. The company, which specializes in M&A, asset management, capital markets and strategic financial advisory, is globally recognized for its expertise and leadership in the financial sector.

Alantra regards LLYC's appraisal as "attractive". In the report kicking off its coverage of the communications, digital marketing and public affairs consultancy, the financial services firm sees strong revaluation potential for the share, between €11.90 and €15 per share, which is 10–40% higher than the current price.

Under the title 'A well-managed firm with an ambitious growth plan ', the report shines the spotlight on LLYC's strengths:

• The consulting firm's customer retention is high (above 50% among its top 20 customers) and 55% of revenues are recurring, thus yielding high profits. In addition, the firm has a strong diversification in terms of customers, products and geography.
•  A communications and public relations sector with high growth prospects (between 5 and 6% per year in 2022-32), in which LLYC has always grown ahead of the market.
• There is high market fragmentation and strong cash position (no debt in 2022), thus enabling the company to tackle the projected acquisition plan, opening up great opportunities.
• LLYC has a strong management team and an aligned shareholder structure.

Alantra sees the objectives that LLYC adopted in April under the 2023–2025 Strategic Plan as "achievable", particularly regarding its plans to almost double in size over the next three years. The firm expects to post operating revenues of €130 million, with an EBITDA of €27 million and a sustained margin of 21%. The Deep Digital unit would already account for half of that invoicing. The consulting firm has announced that it will allocate up to €40 million to grow in key markets: USA, Canada, Mexico, Brazil and the EU (Brussels).

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SOURCE LLYC