(MENAFN- ProactiveInvestors)KBC Advanced Technologies' (LON:KBC) shares are still worth buying despite the fall in oil prices according to finnCap. The software technology expert for the oil sector is focused more on downstream operations than upstream which has been less affected by the falling oil price. But while shares have risen more than 40% so far this year finnCap reckons the company's shift to higher-margin technology sales means it is still undervalued. A wider product range is raising KBC's market share it added while also noting its earnings and improving order book. "As a result of the strategic plan investors should see better quality of earnings rising gross and operating margins greater sales pipeline visibility and a greater diversity of sales base' the broker said. With a shift away from its lower-margin consultancy business revenue for the year will likely fall but the broker suggests earnings per share (EPS) growth to be in the mid-teens next year. The company had £11mln in net cash at the half-year mark which could be used to make bolt-on acquisitions of niche software businesses. 'We believe the investment proposition and reasons for a re-rating remain compelling' finnCap said. The broker initiated coverage on Monday with a 'Buy' rating and a 160p price target 30p above the current share price of 127p.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.