Initiating Coverage on Underfollowed SaaS Company Growth Sales and FCF
Posted by redchip on February 21st, 2012
Asure Software, Inc. is an Austin, Texas and Warwick, Rhode Island, based provider of cloud based workplace optimization software. The Company has two main product lines: Its workforce management solution and its workplace management solution. The Company's current executive management team joined the Company in 2009, and immediately began to slash nonperforming business lines and excess costs with an eye toward moving the business toward a software-as-a-service (SaaS) business model and increasing the Company's recurring revenue streams. We are projecting FY12 revenue, free cash flow, and EPS of $18.7 million, $3.4 million, and $0.54, respectively. Based on our FY11 revenue projection of $10.9 million, this represents YoY revenue growth of 71%. We do not believe that the market has taken into account ASUR's potential long-term growth. We are initiating coverage with a STRONG BUY recommendation and 12-month price target of $22.90, which is 238% above its current level.
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