Fintel PLC: Strong Market Position and Growth Potential Justify Buy Rating

Fintel PLC (FNTL) has received a new Buy rating, initiated by Stifel Nicolaus analyst, Jacob Armstrong.

Jacob Armstrong has given his Buy rating due to a combination of factors that highlight Fintel PLC’s strong market position and growth potential. The company has demonstrated a solid track record with a notable 12% compound annual growth rate in adjusted EBITDA and significant margin improvements since its listing. Fintel’s unique platform, which serves a wide range of financial intermediaries, contributes to its substantial market share of over 20%. The high revenue visibility, with 64% of core revenues being subscription-based and recurring, further strengthens its financial stability.
Armstrong also points to Fintel’s strategic acquisitions as a key driver of growth. Since the fiscal year 2023, the company has completed nine acquisitions, enhancing its product range and expanding its client base. The ongoing organic expansion and strategic acquisitions are expected to continue driving robust earnings growth. The current valuation of Fintel is considered attractive, given its market-leading position and the significant growth opportunities in the highly regulated UK financial services market. These factors collectively support Armstrong’s Buy rating and the target price of 350p.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FNTL in relation to earlier this year.