CANCOM SE: Hold Rating Amidst Revenue Decline and Anticipated Recovery

Jefferies analyst Martin Comtesse maintained a Hold rating on CANCOM SE (0O0F – Research Report) today and set a price target of €26.00.

Martin Comtesse has given his Hold rating due to a combination of factors affecting CANCOM SE’s financial performance. The company reported a decline in first-quarter revenues by 6% year-over-year, reaching €410 million, primarily due to cautious investment behavior from SME customers amidst uncertainties related to US tariffs. This cautiousness has also led to a significant deterioration in margins, with EBITDA falling by 31% year-over-year to €21.1 million, resulting in a margin of 5.1% compared to the previous year’s 7.0%.
Despite these challenges, management has maintained its full-year guidance, citing early signs of recovery and expectations of a stronger second half driven by a resurgence in public client business. The preliminary first-quarter results suggest potential growth in top-line and EBITDA by 6% and 26%, respectively, for the rest of the year, aligning with consensus expectations of €1,782 million in sales, a 3% year-over-year increase. These mixed signals of current financial strain and anticipated recovery likely underpin Comtesse’s decision to rate the stock as Hold.

According to TipRanks, Comtesse is ranked #7066 out of 9371 analysts.